| income statement I am really having trouble with this question... Please Help
The Music Box Company manufactures compact discs. Each disc sells for
$3.50 with unit variable manufacturing expenses of $1.50. For the year
ended December 31, 20X6, total fixed manufacturing expenses were
$325,000 and 500,000 discs were produced and sold. Marketing expenses
amounted to 8% of sale price plus $40,000 in fixed expenses.
Administrative expenses included $17,500 in fixed expenses and variable
expenses equal to 5% of sale price.
a) Prepare a conventional income statement for the year ended
December 31, 20X6.
b) Prepare a contribution margin income statement for the year ended
December 31, 20X6. |