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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:

Solutions

Expert Solution

a. Contribution fromat Income Statement
Per Unit Total
Sales $             74.00 $       1,48,000
Variable cost $             39.45 $           78,900
Contribution Margin $             34.55 $           69,100
Fixed Cost $           55,800
Net Operating Income $           13,300
b. Contribution fromat Income Statement
Per Unit Total
Sales $             74.00 $       1,40,600
Variable cost $             39.45 $           74,955
Contribution Margin $             34.55 $           65,645
Fixed Cost $           55,800
Net Operating Income $             9,845
Working:
a. Selling Price per unit = Total sales revenue/total units sold
= $       1,48,000 / 2000
= $             74.00
b. Variable cost per unit = Total Variable cost /Total units sold
= $     78,900.00 / 2000
= $             39.45

ekkarill92 answered 2 years ago
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