Question
During the past year, Pettay Enterprises had the following fixed costs: Fixed manufacturing costs $224,000 Fixed marketing costs $86,000 Fixed administrative costs $36,000 The company
During the past year, Pettay Enterprises had the following fixed costs:
Fixed manufacturing costs | $224,000 |
Fixed marketing costs | $86,000 |
Fixed administrative costs | $36,000 |
The company also had the following variable costs:
Variable manufacturing costs | $284,000 |
Variable marketing costs | $74,000 |
Variable administrative costs | $56,000 |
During the year, the company produced and sold 1200,000 units of the product at a selling price of $14.00 per unit. The company had no inventory at the beginning of the year.
Required: Prepare a contribution margin income statement for the year.
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