Good day

Cornering the questions for Travel-on-Inc, question 4: prepare a contribution margin income statement for the coming year.How did you determine the:

Sales: $ 492,000

Total variable expenses: $ 132,000

These amounts are provided but the steps to calculate them aren't there so I cannot see how the answers were generated.

The background is:

Travel-On Inc. sells luggage. They sell a duffle bag, a carry-on suitcase and a deluxe suitcase. The price and variable cost for each type of luggage is listed below.

Item

Price

Variable Cost

Duffel Bag

R100.00

R25.00

Carry-on

R180.00

R40.00

Deluxe

R300.00

R120.00

The total fixed costs for Travel-On Inc. equals R60 000. For every 8 duffle bags Travel-On Inc sells it sells 3 carry-on suitcases and 1 deluxe suitcase.

The UFL to the answer is:

https://www.coursehero.com/tutors-problems/Accounting/9517507-Problem-4-13-Travel-On-Inc-sells-luggage-They-sell-a-duffle-bag-a-c/?justUnlocked=1

Thanks for your help

B