over-to-Cover Company Contribution Margin Income Statement For the Year Ended De
ID: 2465286 • Letter: O
Question
over-to-Cover Company
Contribution Margin Income Statement
For the Year Ended December 31, 2016
1
Sales
$424,000.00
2
Variable costs:
3
Manufacturing
$233,200.00
4
Selling
21,200.00
5
Administrative
63,600.00
318,000.00
6
Contribution margin
106,000.00
7
Fixed Costs:
8
Manufacturing
$5,000.00
9
Selling
4,000.00
10
Administrative
33,400.00
42,400.00
11
Income from operations
Biblio Files Company
Contribution Margin Income Statement
For the Year Ended December 31, 2016
1
Sales
$424,000.00
2
Variable costs:
3
Manufacturing
$169,600.00
4
Selling
16,960.00
5
Administrative
67,840.00
254,400.00
6
Contribution margin
169,600.00
7
Fixed Costs:
8
Manufacturing
$88,000.00
9
Selling
8,000.00
10
Administrative
10,000.00
106,000.00
11
Income from operations
$63,600.00
Review the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the table below from the data provided in the income statements. Each company sold 84,800 units during the year.
$63,600.00
over-to-Cover Company
Contribution Margin Income Statement
For the Year Ended December 31, 2016
Explanation / Answer
Answer:
Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) 25% 40% Unit contribution margin 1.25 2 Break-even sales (units) 33920 53000 Break-even sales (dollars) 169600 265000Related Questions
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