Business Expert
Sep 29, 2008, 03:03 PM
Assume that the company produces and sells 90,000 units during the year at the selling price of $7.50 per unit. Prepare a contribution format income statement for the year.
I just want to know how to construct a contribution statement out of this?
I have figured out the first part for the schedule.
Units produced and sold
60,000 80,000 100,000
Total costs:
Variable costs 150,000 200,000 250,000
Fixed costs 360,000 360,000 360,000
Total costs 510,000 560,000 610,000
Cost per unit:
Variable cost 2.50 2.50 2.50
Fixed cost 6.00 4.50 3.60
Total cost per unit 8.50 7.00 6.10
I just want to know how to construct a contribution statement out of this?
I have figured out the first part for the schedule.
Units produced and sold
60,000 80,000 100,000
Total costs:
Variable costs 150,000 200,000 250,000
Fixed costs 360,000 360,000 360,000
Total costs 510,000 560,000 610,000
Cost per unit:
Variable cost 2.50 2.50 2.50
Fixed cost 6.00 4.50 3.60
Total cost per unit 8.50 7.00 6.10





