Question
Please answer completely Chapter 3 Review Question Ward Manufacturing produces metal picture frames. The company's income statements for the last two years are presented below:
Please answer completely
Chapter 3 Review Question
Ward Manufacturing produces metal picture frames. The company's income statements for the last two years are presented below:
|
| 2017 | 2018 |
| Units sold | 50,000 | 70,000 |
| Sales | $800,000 | $1,120,000 |
| Less: Cost of goods sold | 550,000 | 710,000 |
| Gross margin | 250,000 | 410,000 |
| Less: Operating expenses | 150,000 | 190,000 |
| Net income | $100,000 | $220,000 |
The company has no beginning or ending inventories. All activity in this problem is in the relevant range. Required: a. Estimate the company's total variable cost per unit, and its total fixed costs per year using the high/low method. b. Prepare a contribution margin format income statement for 2018.
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Accounting Principles
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
IFRS global edition
1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617
