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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 84,800 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) | $ | $ |
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Income Statement - Cover-to-Cover
Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8 | ||
Sales | $424,000 | |
Variable costs: | ||
Manufacturing expense | $254,400 | |
Selling expense | 21,200 | |
Administrative expense | 63,600 | (339,200) |
Contribution margin | $84,800 | |
Fixed costs: | ||
Manufacturing expense | $5,000 | |
Selling expense | 4,000 | |
Administrative expense | 12,200 | (21,200) |
Operating income | $63,600 |
Income Statement - Biblio Files
Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 20Y8 | ||
Sales | $424,000 | |
Variable costs: | ||
Manufacturing expense | $169,600 | |
Selling expense | 16,960 | |
Administrative expense | 67,840 | (254,400) |
Contribution margin | $169,600 | |
Fixed costs: | ||
Manufacturing expense | $88,000 | |
Selling expense | 8,000 | |
Administrative expense | 10,000 | (106,000) |
Operating income | $63,600 |
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