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Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM ratios, and the CM per unit for the two products are
Gogan Company manufactures and sells two products: Basic and Deluxe. Monthly sales, CM ratios, and the CM per unit for the two products are shown below: Sales Contribution margin ratio Contribution margin per unit Product Basic $600,000 Deluxe $400,000 Total $1,000,000 60% 9.00 35% ? $ 11.50 ? The company's fixed expenses total $400,000 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. Sales Variable expenses Contribution margin Fixed expenses Answer is not complete. Basic Deluxe Total Amount % Amount % Amount % $ 600,000 100 $400,000 100 $1,000,000 100 240,000 40 260,000 65 500,000 100 $360,000 60 $ 140,000 35 $ 500,000 0 400,000 $ 100,000 C
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