The following data are for Nets Company for the current year:

Sales (20,000 units) $750,000

Direct materials 270,000

Direct labor cost 90,000

Variable manufacturing overhead 27,000

Fixed manufacturing overhead 36,000

Variable selling and administrative

expenses

45,000

Fixed selling and administrative

expenses

150,000

The company produced and sold 20,000 units.

a. Prepare an income statement for the current year using the contribution margin format.

b. Prepare an income statement for the current year using the traditional format.

c. What additional information does the contribution margin format provide compared to the

traditional format?