Fletcher Corporation prepared the following income statement for the fourth quar

Question

Fletcher Corporation prepared the following income statement for the fourth quarter in 2018.

Fletcher’s annual fixed manufacturing expenses, incurred uniformly each quarter, amount to $835,400; it also pays a sales commission of $1 per unit to its sales personnel.

Prepare a contribution margin income statement for the fourth quarter in 2018. (Round "Per-unit dollars" to 2 decimal places and "Percentages of sales" to 1 decimal place.)

Fletcher Corporation prepared the following income statement for the fourth quarter in 2018.

Explanation / Answer

FLETCHER CORPORATION Contribution income Statement for Quarter -4 , 2018 Amount in $ Amount in $ Sales 932000 Less: variable costs      variable manufacturing expenses 378750      variable Selling & Admin Expenses 30400 409150 Contirbuion 522850 less: Fixed Expenses          Fixed manufacturing Expenses 208850          Fixed Selling & Admin expenses 154600 363450 Operating profit 159400 annual fixed manufacturing expenses =835400 Quarterly Fixed manufacturing expenses =$835400/4 =$208,850 Variable manufacturing Expenses for Quarter 4 =$587600 -$208850 =$378750 variable selling & Admin Expenses =Units *$1 =30400*$1 =$30400 Fixed selling & Admin Expenses =$185000-$30400 =$154600

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