Hey Chegg, I need help with question 2. I keep getting the wrong answer. Product

Question

Hey Chegg, I need help with question 2. I keep getting the wrong answer.

Product Pricing: Single Product
Presented is the 2009 contribution income statement of Colgate Products.

units

COLGATE PRODUCTS
Contribution Income Statement
For Year Ended December 31, 2009 Sales (12,000 units) $1,440,000 Less variable costs Cost of goods sold $480,000 Selling and administrative 132,000 (612,000) Contribution margin 828,000 Less fixed costs Manufacturing overhead 510,000 Selling and administrative 220,000 (730,000) Net income $98,000

Explanation / Answer

Expected profit & Loss is $ -2,000

Working as below

Sales (16000*109) 1744000 Cost of Goods Sold (480000/12000)*16000+16000*8 768000 Selling & Distrbution Expenses (132000/12000)*16000 176000 944000 Contrbution Margin 800000 Less : Fixed Cost manufacturing Overhead 582000 Selling & Administrative expenses 220000 802000 Net Income -2000

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