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ACC 2 0 2 Chapter 5 Open - Ended Assignment Note: Please put your answers only in the section below the Bold Red sentence at

ACC 202
Chapter 5 Open-Ended Assignment
Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below.
Last month, Raneer Company sold its product for $70 per unit. Fixed production costs were $30,000, and variable production costs amounted to $15.00 per unit. Fixed selling and administrative costs totaled $19,000, and variable selling and administrative costs amount to $5.00 per unit. Raneer produced and sold 5,400 units last month.
Required:
A. Prepare a traditional income statement (down to Operating Income) for Raneer Industries.
B. Prepare a contribution margin income statement (down to Operating Income) for Raneer Industries.
C. Why do companies use the contribution margin income statement format?
Your answers to this open-ended assignment should be placed in the space below this line.
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