Question
In: Accounting
Marano Corporation produces and sells a single product. In October, the company sold 1,000 units. Its...
Marano Corporation produces and sells a single product. In October, the company sold 1,000 units. Its total sales were $156,000, its total variable expenses were $79,000, and its total fixed expenses were $55,900.
a. Construct the company's contribution format income statement for October. (Do not round intermediate calculations.)
b. Redo the company's contribution format income statement assuming that the company sells 900 units. (Do not round intermediate calculations.)
Solutions
Expert Solution
Requirement a
|
Contribution margin Income statement |
|
|
Sales Revenue |
$ 1,56,000.00 |
|
Variable cost |
$ 79,000.00 |
|
Contribution margin |
$ 77,000.00 |
|
Fixed cost |
$ 55,900.00 |
|
Net operating income |
$ 21,100.00 |
Requirement b
|
Contribution margin Income statement (900 Units) |
|
|
Sales Revenue |
$ 1,40,400.00 |
|
Variable cost |
$ 71,100.00 |
|
Contribution margin |
$ 69,300.00 |
|
Fixed cost |
$ 55,900.00 |
|
Net operating income |
$ 13,400.00 |
|
Contribution margin Income statement (900 Units) |
|
|
Sales Revenue |
=156000/1000*900 |
|
Variable cost |
=79000/1000*900 |
|
Contribution margin |
=140400-71100 |
|
Fixed cost |
55900 |
|
Net operating income |
69300-55900 |
|
Working |
Total (A) |
Units sold (B) |
Per Unit(A/B) |
|
Sales Revenue |
$ 1,56,000.00 |
1000 |
$ 156.00 |
|
Variable cost |
$ 79,000.00 |
1000 |
$ 79.00 |
|
Contribution margin |
$ 77,000.00 |
1000 |
$ 77.00 |
|
Fixed cost |
$ 55,900.00 |
||
|
Net operating income |
$ 21,100.00 |
ekkarill92 answered 2 years agoRelated Solutions
Marano Corporation produces and sells a single product. In October, the company sold 2,000 units. Its...
Marano Corporation produces and sells a single product. In
October, the company sold 2,000 units. Its total sales were
$148,000, its total variable expenses were $78,900, and its total
fixed expenses were $55,800.
Required:
a.
Construct the company's contribution format income statement for
October. (Do not round intermediate
calculations.)
Net Operating Income:
b.
Redo the company's contribution format income statement assuming
that the company sells 1,900 units.(Do not round
intermediate calculations.)
Net Operating Income:
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6.
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