Mechem Corporation produces and sells a single product. In April, the company sold 2,100 units. Its total sales were $205,800, its total variable expenses were $107,100, and its total fixed expenses were $82,400.Required: a. Construct the company's contribution format income statement for April.b. Redo the company's contribution format income statement assuming that the company sells 2,200 units.
What will be an ideal response?
a.
| Sales (2,100 units) | $ | 205,800 |
| Variable expenses | 107,100 | |
| Contribution margin | 98,700 | |
| Fixed expenses | 82,400 | |
| Net operating income | $ | 16,300 |
| Sales (2,200 units) | $ | 215,600 |
| Variable expenses | 112,200 | |
| Contribution margin | 103,400 | |
| Fixed expenses | 82,400 | |
| Net operating income | $ | 21,000 |
Business
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