This Company has the following selected data for the current year:

Task:

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 do you learn from the contribution margin format?

Sales (10,000 units) $90,000 Direct materials 30,000 Direct labor costs 10,000 Variable manufacturing overhead 3,500 Fixed manufacturing overhead 7,500 Variable selling and administrative 2,500 expenses Fixed selling and administrative 15,000 expenses The company produced and sold 10,000 units. Direct materials and direct labor are variable costs