Ask Question
9 August, 16:34

Zhao Co. has fixed costs of $390,600. Its single product sells for $181 per unit, and variable costs are $119 per unit. The company expects sales of 10,000 units. Prepare a contribution margin income statement for the year ended December 31, 2017.

+1
Answers (1)
  1. 9 August, 16:43
    0
    The preparation of the contribution margin income statement for the year ended December 31, 2017 is presented below:

    Sales (10,000 units * $181) $1,810,000

    Less: Variable cost (10,000 units * $119) ($1,190,000)

    Contribution margin $620,000

    Less: Fixed cost ($390,600)

    Net income $229,400
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Zhao Co. has fixed costs of $390,600. Its single product sells for $181 per unit, and variable costs are $119 per unit. The company expects ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers