Prepare income statements using contribution margin and traditional formats: income statements using variable costing format (contribution margin), income statements using absorption costing (traditional)

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Question 6: Prepare income statements using contribution margin and traditional formats Cornell Enterprises has the following selected data for the current year: Sales (10,000 units 100,000 40,000 Direct materials 15,000 Direct labor costs 4,000 Variable manufacturing overhead 8,000 Fixed manufacturing overhead Variable selling and administrative expenses 3,000 18,000 Fixed selling and administrative expenses The company produced and sold 10,000 units. Direct materials and labor are variable costs. Required: 1. Prepare an income statement for the current year using the contribution margin (variable costing format 2. Prepare an income statement for the current year using the traditional (absorption costing) format