over-to-Cover Company

Contribution Margin Income Statement

For the Year Ended December 31, 2016

1

Sales

$424,000.00

2

Variable costs:

3

Manufacturing

$233,200.00

4

Selling

21,200.00

5

Administrative

63,600.00

318,000.00

6

Contribution margin

106,000.00

7

Fixed Costs:

8

Manufacturing

$5,000.00

9

Selling

4,000.00

10

Administrative

33,400.00

42,400.00

11

Income from operations

Biblio Files Company

Contribution Margin Income Statement

For the Year Ended December 31, 2016

1	Sales			$424,000.00
2	Variable costs:
3	Manufacturing		$169,600.00
4	Selling		16,960.00
5	Administrative		67,840.00	254,400.00
6	Contribution margin			169,600.00
7	Fixed Costs:
8	Manufacturing		$88,000.00
9	Selling		8,000.00
10	Administrative		10,000.00	106,000.00
11	Income from operations			$63,600.00

Review the income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the table below from the data provided in the income statements. Each company sold 84,800 units during the year.

	Cover-to-Cover Company	Biblio Files Company
Contribution margin ratio (percent)
Unit contribution margin
Break-even sales (units)
Break-even sales (dollars)

$63,600.00