In July, Meers Corporation sold 3,700 units of its only product. Its total sales were $107,300, its total variable expenses were $66,600, and its total fixed expenses were $34,800. Required:a. Construct the company's contribution format income statement for July.b. Redo the company's contribution format income statement assuming that the company sells 3,400 units.
What will be an ideal response?
a.
| Sales (3,700 units) | $ | 107,300 |
| Variable expenses | 66,600 | |
| Contribution margin | 40,700 | |
| Fixed expenses | 34,800 | |
| Net operating income | $ | 5,900 |
b.
| Sales (3,400 units) | $ | 98,600 |
| Variable expenses | 61,200 | |
| Contribution margin | 37,400 | |
| Fixed expenses | 34,800 | |
| Net operating income | $ | 2,600 |
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