In: Accounting
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: | |
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 | |||||||||