Contribution Income Statement and Cost-Volume-Profit Graph Kopi Company produces

Question

Contribution Income Statement and Cost-Volume-Profit Graph
Kopi Company produces dog cages that are sold for $35 per unit. The company produced and sold 7,000 dog cages during July 2017. There were no beginning or ending inventories. Variable and fixed costs follow.

Required
Prepare a contribution income statement for July.

Do not use any negative signs with your answers.   

Variable Costs per Unit Fixed Costs per Month Manufacturing: Manufacturing overhead $35,000 Direct materials $10 Selling and administrative 15,000 Direct labor 2 Total $50,000 Manufacturing overhead 5 $17 Selling and administrative 5 Total $22

Explanation / Answer

Kopi Company Contribution Income Statement For the month of July 2017 Particulars Amt. Amt. Sales (7000 x $35) $     245,000 Less: Variable cost Direct Material $ 70,000 Direct Labor      14,000 Manufacturing Overheaad      35,000 Selling and Administrative      35,000         154,000    Contribution Margin            91,000 Less: Fixed Cost Manufacturing Overheaad      35,000 Selling and Administrative      15,000            50,000    Profit $       41,000

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