Question
Fletcher Corporation prepared the following income statement for the fourth quarter in 2020. Sales revenue (32,000 units)$940,000Less: Costs of goods sold591,600Gross margin348,400Less: Selling & administrative
Fletcher Corporation prepared the following income statement for the fourth quarter in 2020.
Sales revenue (32,000 units)$940,000Less: Costs of goods sold591,600Gross margin348,400Less: Selling & administrative expenses186,600Net income$161,800
Fletcher's annual fixed manufacturing expenses, incurred uniformly each quarter, amount to $839,400; it also pays a sales commission of $3 per unit to its sales personnel.
Required:
Prepare a contribution margin income statement for the fourth quarter in 2020.(Round "Per-unit dollars" to 2 decimal places and "Percentages of sales" to 1 decimal place.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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