Crane Computer Company, in addition to its retail sales, conducts night classes in computer technology. Crane...

Crane Computer Company, in addition to its retail sales, conducts night classes in computer technology. Crane has provided you the following information:

Number of students	122
Revenue per student	$500
Student-related variable costs	$120	per student
Salary for three instructors	$2,000	each
Administrative costs	$50	per student
Factory fixed costs	$15,200	per year

Construct a contribution margin format income statement.

Expert Solution

Contribution margin format income statement.

Revenue (122 x $500)		61,000
Less: Variable Costs
Student-related variable costs (122 x $120)	14,640
Administrative costs (122 x $50)	6,100	20,740
Contribution Margin		40,260
Less: Fixed Costs
Salary for three instructors ($2,000 x 3)	6,000
Factory fixed costs	15,200	21,200
Net Operating Income		19,060

ekkarill92 answered 5 months ago

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