Question
Contribution Margin Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from
Contribution Margin
Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 83,800 units during the year.
Cover-to-Cover Company | Biblio Files Company | |
Contribution margin ratio (percent) | fill in the blank | fill in the blank |
Unit contribution margin | $fill in the blank | $fill in the blank |
Break-even sales (units) | fill in the blank | fill in the blank |
Break-even sales (dollars) | $fill in the blank | $fill in the blank |
Income Statement - Cover-to-Cover
Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8 | ||
Sales | $419,000 | |
Variable costs: | ||
Manufacturing expense | $251,400 | |
Selling expense | 20,950 | |
Administrative expense | 62,850 | (335,200) |
Contribution margin | $83,800 | |
Fixed costs: | ||
Manufacturing expense | $5,000 | |
Selling expense | 4,000 | |
Administrative expense | 11,950 | (20,950) |
Operating income | $62,850 |
Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8Sales$419,000 Variable costs: Manufacturing expense$167,600 Selling expense16,760 Administrative expense67,040(251,400) Contribution margin$167,600 Fixed costs: Manufacturing expense$86,750 Selling expense8,000 Administrative expense10,000(104,750)Operating income$62,850
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started