Situation: ABC Co is a company that manufactures pet supplies throughout the United States. The following information was available for a recent fiscal year (ending December 31) related the Collar Division: Annual Production Sales Price 130,000 units $6.99 per unit 1 Units Sold 2 3 Variable Production Costs per Unit 4 Direct Materials 5 Direct Labor 6 Manufacturing Overhead 7 128,000 units $2.07 per unit $1.25 per unit $0.85 per unit & Fixed Manufacturing Overhead 9 $65,000 per year based on a relevant range of 100,000 to 200,000 units HINT: What is this on a per unit basis? 21 Do not round your intermediate calculation. $0.64 per unit 2 Variable Selling & Administrative Co 3 Fixed Selling & Administrative Costs $195,000 per year 3. 6 7 8 19 40 41 1. Prepare a traditional income statement for this product line for the year based on this information. Be sure to title the statement appropriately. (10 points) ABC Co. Partial Traditional Income Statement For the Year Ending December 31, 20 Sales Cost of Goods Sold Gross Margin Selling and Administrative Expenses Operating Profit 422. Prepare a contribution margin income statement for this product line for the year based on this information. Be sure title the statement appropriately. (10 points) 43 44 45 ABC Co. Partial Contribution Margin Income Statement For the Year Ending December 31, 20 46 47 48 Sales 49 50. 521 53 54 55 56 57 56 139 60 61 Variable Costs: Cost of Goods Sold Selling & Administrative Expenses Total Variable Costs Contribution Margin Fixed Costs: Costs of Goods Sold Selling & Administrative Expenses Total Fixed Costs Operating Profit