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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 76,800 units during the year.

Cover-to-Cover Company Biblio Files Company
Contribution margin ratio (percent)
Unit contribution margin $ $
Break-even sales (units)
Break-even sales (dollars) $ $

Income Statement - Cover-to-Cover

Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8
Sales $384,000
Variable costs:
Manufacturing expense $230,400
Selling expense 19,200
Administrative expense 57,600 (307,200)
Contribution margin $76,800
Fixed costs:
Manufacturing expense $5,000
Selling expense 4,000
Administrative expense 10,200 (19,200)
Operating income $57,600

Income Statement - Biblio Files

Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8
Sales $384,000
Variable costs:
Manufacturing expense $153,600
Selling expense 15,360
Administrative expense 61,440 (230,400)
Contribution margin $153,600
Fixed costs:
Manufacturing expense $78,000
Selling expense 8,000
Administrative expense 10,000 (96,000)
Operating income $57,600

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