Homework SourseGonyo Inc which produces and sells a single product has prov
Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:
Redo the company\'s contribution format income statement assuming that the company sells 5,200 units.
| Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below: |
Solution
Sales price per unit=$310,000/5000=$62
Variable cost per unit=$125000/5000=$25
NOTE:Variable cost per unit and Total fixed expenses do not change with change in units.
| Sales(62*5200) | $322400 |
| Variable cost(25*5200) | $130000 |
| Contribution margin | $192400 |
| Fixed expenses | 106100 |
| Net operating income | $86300. |
