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Contribution Income Statement

Jackson Company had the following data (in thousands) for a given period. Assume there are no inventories.

Direct labor $170
Direct materials 210
Variable indirect manufacturing 110
Contribution margin 200
Fixed selling and administrative expenses 100
Operating income 10
Sales 990

Compute the (a) variable manufacturing cost of goods sold, (b) variable selling and administrative expenses, and (c) fixed indirect manufacturing costs.

Solution Preview

Compute the (a) variable manufacturing cost of goods sold.

The variable manufacturing cost of goods sold includes direct labor, direct materials, and variable indirect manufacturing cost. Therefore,

Direct labor $170
Direct materials 210
Variable indirect manufacturing 110
Variable ...

Solution Summary

Jackson Company had the following data (in thousands) for a given period. Assume there are no inventories.

Direct labor $170
Direct materials 210
Variable indirect manufacturing 110
Contribution margin 200
Fixed selling and administrative expenses 100
Operating income 10
Sales 990

Compute the (a) variable manufacturing cost of goods sold, (b) variable selling and administrative expenses, and (c) fixed indirect manufacturing costs.

$2.19