Module 5 Case 4

The contribution format income statement for Huerra Company for last year is given below:

Total Unit Sales . . . $4,000,000 $80.00 Variable expenses . . . 2.800,000 56.00 Contribution margin . . .. 1,200,000 24.00 Fixed expenses . ... 840,000 16.80 Net operating income . 360,000 7.20 Income taxes @ 30% 108,000 2.16 Net operating income . . $ 252,000 $ 5.04