XYZ Personnel Company wishes to present its operating results for the year ended December 31^st in the form of a contribution margin income statement.XYZ only offers temporary personnel placements and over the last 5 years has had between 20,000 and 80,000 placements per year.Total operating expenses have ranged from $321,875 at the low activity level to $966,875 at the high activity level.Sales volume in the current year just ended was 32,000 placements and net income was $45,125.Because XYZ is a service business there is no inventory.

Prepare the contribution margin income statement for the year just ended.Include columns for total dollars, per-unit dollars and percentage of sales. (8 marks)

[Hint: This is a comprehensive question requiring use of your knowledge for separating mixed costs). (Insert calculations here).

Contribution margin income statement

Total

Per Unit

Percent

Sales

Variable costs

Contribution margin

Fixed costs

Net income