Contribution Margin and Functional Income Statements The following information is available for Dabney Company for 2009:

Required:
1. Prepare a contribution margin income statement.
2. Prepare a functional income statement.
3. Calculate the number of units sold.
4. Calculate the contribution margin per unit.
5. Interpretive Question: Why is a knowledge of the contribution margin more useful than a knowledge of the markup per unit when management has to make a decision about profitability?

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Sales revenue (at $20 per unit) Fixed manufacturing costs Variable manufacturing costs (at $8 per unit) Fixed selling expenses Variable selling expenses (at $2 per unit) $151,200 24,000 60,480 70,000 15,120