Analysis of a Contribution Margin Income Statement Fill in the missing amounts for the following three cases. Note: There is no manufacturing overhead in this exercise.

Transcribed Image Text:

Case I Case II Case III Sales revenue $50,000 $60,000 $ (G) Variable cost of goods sold: Direct materials $12,500 $ (D) $ 20,000 Direct labor (A) 15,000 20,000 Variable selling and administrative costs 3,500 (E) 10,000 Contribution margin (B) $20,000 $ (H) Fixed selling and administrative costs* 5,500 10,000 (1) Rent expense on office building Depreciation expense on delivery trucks Profit Gross margin *Except rent and depreciation. (C) 5,000 2,000 5,000 2,500 8,000 $ 4,000 $ (F) 20,000 30,000 40,000