The following is the income statement from Ajax Corporation, a merchandising firm.

You learn that $18,000 in transport in represents fixed costs, and Ajax pays its sales persons a commission of 6%. That is, a person selling $1,000 worth of items would earn a commission of $60.

Required:
Prepare an income statement in the contribution marginformat.

Transcribed Image Text:

Ajax Corporation Income State ment for the Most Recent Year Revenue Cost of goods sold Transport in Gross margin Administration costs Seling costs $1,525,000 900,000 24,500 $600,500 220,000 240,000 $140,500 - Profit