Mechem Corporation produces and sells a single product. In April, the company sold 2000 units. Its total sales were $160,000, its total variable expenses were $78,600, and its total fixed expenses were $55,500.Required: a. Construct the company's contribution format income statement for April. (Do not round intermediate calculations.)Sales?Variable expenses?Contribution margin81,400?Fixed expenses?Net operating income$25,900?b. Redo the company's contribution format income statement assuming that the company sells 1900 units. (Do not round intermediate calculations.) Sales?Variable expenses?Contribution margin77,330?Fixed expenses?Net operating income$21,830?
What will be an ideal response?
a.
| Sales | $160,000? |
| Variable expenses | 78,600? |
| Contribution margin | 81,400? |
| Fixed expenses | 55,500? |
| Net operating income | $25,900? |
b.
| Sales | $152,000? |
| Variable expenses | 74,670? |
| Contribution margin | 77,330? |
| Fixed expenses | 55,500? |
| Net operating income | $21,830? |
You might also like to view...
The Internet's powerful capabilities and increasing importance have resulted in a backlash that manifests itself in various ways. Giving examples, explain how this statement is true
What will be an ideal response?
The maximax decision criterion is used by pessimistic decision makers and maximizes the maximum outcome for every alternative
Indicate whether the statement is true or false
Though it is common in the United States to use cartoon characters in advertising to children, both Japan and France limit that practice, and Canada bans any advertising targeted directly at children.
Answer the following statement true (T) or false (F)
One way of describing the solution that high net worth provides to the moral hazard problem is to say that it makes debt contracts incentive compatible
Indicate whether the statement is true or false