Company-wide Contribution Margin Statements Worksheet Variable Costing Method (no product line allocation needed):

Step 1: Use move or copy function to create a copy of the Chart of Accounts worksheet. Name it CA sorting.

Step 2: Use the sort or filter function within CA sorting to sort accounts by type to identify all variable and fixed expenses.

Step 3: Set up a new worksheet called Margin sup. Calculate the total product material variable cost referencing the product cost worksheet, and daily sales worksheet.

Step 4: Continue within Margin sup. Clean up the worksheet by deleting all balance sheet accounts not needed. You should only use the accounts in income statement sorted by type. Using VLookup bring the account balance from the "inc data sheet by referencing account number. Sum the total fixed cost and total variable cost (not including the variable material cost).

Step 5: Set up a worksheet named margin. This is your worksheet for the final Contribution Margin Income Statement. Link the total sales revenue from the Daily Sales worksheet, and link the total variable cost from the Margin sup work sheet.

Step 6: Use 21% as the federal income tax rate. Apply the rate to the pre-tax income and calculate the final net income after the tax expense.

Step 7: Make sure that you have properly set up the income statement to print out on a single page in good form.