1. A condensed income statement for Tramco follows: (amounts are in thousands of
ID: 2504457 • Letter: 1
Question
1. A condensed income statement for Tramco follows: (amounts are in thousands of dollars)
Products
Sales (total)
$200
$180
$320
$700
Unit-level Variable Cost (total)
(120)
(160)
(200)
(480)
Contribution Margin
80
20
120
220
Facility-Level Fixed Cost
(25)
(30)
(40)
(95)
Income (Loss)
$ 55
$(10)
$ 80
$125
Tramco
Products
F
G
H
Total
Sales (total)
$200
$180
$320
$700
Unit-level Variable Cost (total)
(120)
(160)
(200)
(480)
Contribution Margin
80
20
120
220
Facility-Level Fixed Cost
(25)
(30)
(40)
(95)
Income (Loss)
$ 55
$(10)
$ 80
$125
Explanation / Answer
New income
Change in income= 105000-125000 = -20,000
c. $20,000 decrease
Products F G H Total Sales (total) $200 $0 $320 $520 Unit-level Variable Cost (total) -120 0 -200 ($320) Contribution Margin 80 0 120 $200 Facility-Level Fixed Cost -25 -30 -40 ($95) Income (Loss) $55 ($30) $80 $105Related Questions
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