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    Preparing a Contribution Format Income Statement

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    Grater Inc. sells product A and product B. Revenue and cost information relating to the products follow:

    (Please see the attached file).

    Common fixed expenses in the company total $390,000 annually. Last year the company produced and sold 10,000 of Product A and 15,000 of Product B.

    Prepare a contribution format income statement for the year segmented by product lines. Show details clearly.

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    Solution Preview

    *** Solution in proper format attached.

    Sales - A 480,000 (10,000 x 48.00)
    Variable expenses 245,000 (10,000 x ...

    Solution Summary

    This solution shows the proper contribution format income statement for Grater Inc.