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Green Incorporated sets the sales price of the products they manufacture at $60

ID: 2568734 • Letter: G

Question

Green Incorporated sets the sales price of the products they manufacture at $60 per unit.

The Direct Materials costs 12.00 each unit.

The Direct Labor costs 11.00 each unit.

Variable Manufacturing Overhead costs 6.00 each unit.

Fixed Manufacturing Overhead costs 34000.00 each month.

Variable Selling and Administrative costs 5.00 each unit.

Fixed and Administrative costs- 17000.00

Please complete the following showing how you reached the solution:

A. Fill out THE MONTH'S Contribution Margin Income Statement Budget for Green Incorporated (ASSUME THEY PLAN TO SELL 10000 UNITS)

B. Fill out THE MONTH'S Contribution Margin Income Statement Budget for Green Incorporated (ASSUME THEY PLAN TO SELL 11000 UNITS)

Total Sales Variable Cost Contribution Margin Fixed Costs Operating Income

Explanation / Answer

A. Fill out THE MONTH'S Contribution Margin Income Statement Budget for Green Incorporated (ASSUME THEY PLAN TO SELL 10000 UNITS)

B. Fill out THE MONTH'S Contribution Margin Income Statement Budget for Green Incorporated (ASSUME THEY PLAN TO SELL 11000 UNITS)

Total Sales (10000*60) 600000 Variable Cost (10000*34) (340000) Contribution Margin 260000 Fixed Costs (34000+17000) (51000) Operating Income 209000