Question
Tesla, Inc. had the following income statement for last period: Sales $27,000 Cost of Sales (manufacturing) 11,000 Selling and General Administrative 2,000 Net Income $14,000
Tesla, Inc. had the following income statement for last period:
| Sales | $27,000 |
| Cost of Sales (manufacturing) | 11,000 |
| Selling and General Administrative | 2,000 |
| Net Income | $14,000 |
If costs of sales was 70% variable and 30% fixed, and Selling and General Expense was 65% variable and 35% fixed.
Required:
A. Prepare a contribution format income statement.
B. Calculate its contribution margin percentage.
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Auditing
Authors: Allan Millichamp, John Taylor
9th Edition
1844809404, 978-1844809400
