Marano Corporation produces and sells a single product. In October, the company

Question

Marano Corporation produces and sells a single product. In October, the company sold 2,000 units. Its total sales were $160,000, its total variable expenses were $80,600, and its total fixed expenses were $57,500. Required: a. Construct the company's contribution format income statement for October. (Do not round intermediate calculations.) t operating income b. Redo the company's contribution format income statement assuming that the company sells 1,900 units. (Do not round intermediate calculations.) operating income 26

Explanation / Answer

Contribution format income statement a) total per unit amount Sales 160,000 80 less:Variable expense 80,600 40.3 Contribution margin 79,400 39.7 less:Fixed expense 57,500 Net operating income 21,900 1900 units b) total per unit amount Sales 152,000 80 less:Variable expense 76,570 40.3 Contribution margin 75,430 39.7 less:Fixed expense 57,500 Net operating income 17,930

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