Exercise 214 Complete each of the following contribution for

Exercise 2-14 Complete each of the following contribution format income statements by supplying the missing numbers b. C. d. Sales revenue $522,660 $653,692 99,460 Variable expenses Contribution margin Fixed expenses Operating income Income taxes 263,528 139,792 175,316 475,684 87,584 187,612 20,910 26,320 18,892 55,462 Net income $14,637 $56,676 $166,386

Solution

a.

Sales =contribution + variable expenses=139792+263528=403320

Fixed expenses=contribution-operating income=139792-20910=118882

Income tax =20910-14637=6273

b.

Variable expense=sales-contribution =522660-175316=347344

Operating income=175316-87584=87732

Net income=operating income-tax=87732-26320=61412

c.

Operating income=net income+tax=56676+18892=75568

Contribution=operating income + fixed expenses=75568+187612=263180

Sales=contribution + variable expense=263180+99460=362640

d.

Variable expenses= sales- margin=653692-475684=178008

Operating income=net income+tax=166386+55462=221848

Fixed expenses=contribution-operating income=475684-221848=253836