Champion Corporation produces and sells a single product. In April, the company sold 1,700 units. Its total sales were $153,000, its total variable costs were $79,900, and its total fixed costs were $56,800.Required:a. Construct the company's contribution format income statement for April in good form.b. Redo the company's contribution format income statement assuming that the company sells 1,600 units.
What will be an ideal response?
a.
| Sales (1,700 units) | $ | 153,000 |
| Variable costs | 79,900 | |
| Contribution margin | 73,100 | |
| Fixed costs | 56,800 | |
| Operating profit | $ | 16,300 |
| Sales (1,600 units × $90) | $ | 144,000 |
| Variable costs (1,600 × $47) | 75,200 | |
| Contribution margin | 68,800 | |
| Fixed costs | 56,800 | |
| Operating profit | $ | 12,000 |
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