Marano Corporation produces and sells a single product. In October, the company
ID: 2429789 • Letter: M
Question
Marano Corporation produces and sells a single product. In October, the company sold 2,000 units. Its total sales were $148,000, its total variable expenses were $78,900, and its total fixed expenses were $55,800.
Construct the company's contribution format income statement for October. (Do not round intermediate calculations.)
Redo the company's contribution format income statement assuming that the company sells 1,900 units.(Do not round intermediate calculations.)
Marano Corporation produces and sells a single product. In October, the company sold 2,000 units. Its total sales were $148,000, its total variable expenses were $78,900, and its total fixed expenses were $55,800.
Explanation / Answer
a. Contribution fromat Income Statement Per Unit Total Sales $ 74.00 $ 1,48,000 Variable cost $ 39.45 $ 78,900 Contribution Margin $ 34.55 $ 69,100 Fixed Cost $ 55,800 Net Operating Income $ 13,300 b. Contribution fromat Income Statement Per Unit Total Sales $ 74.00 $ 1,40,600 Variable cost $ 39.45 $ 74,955 Contribution Margin $ 34.55 $ 65,645 Fixed Cost $ 55,800 Net Operating Income $ 9,845 Working: a. Selling Price per unit = Total sales revenue/total units sold = $ 1,48,000 / 2000 = $ 74.00 b. Variable cost per unit = Total Variable cost /Total units sold = $ 78,900.00 / 2000 = $ 39.45