Drafting a Contribution Format Income Statement
Not what you're looking for?
Using a contribution format income statement
Porter company's most recent income statement is shown below:
total per unit
Sales(30,000 units) $150,000 $5
Less variable expenses $90,000 3
Contribution margin $60,000 $2
Lesss fixed expenses $50,000
Net operating income $10,000
prepare a new income statement under each of the following conditions (consider each case independently:
1. The sales volume increases by 15%
2. The selling price decreases by 50 cents per unit, and the sales volume increases by 20%
3. The selling price increases by 50 cents per unit, fixed expenses increase by $10,000, and the sales volume decreases by 5%
4. variable expenses increase by 20 cents per unit, the selling price increases by 12%, and the sales volume decreases by 10%.
Purchase this Solution
Solution Summary
This explains the preparation of contribution format income statement.
Solution Preview
Using a contribution format income statement
Porter company's most recent income statement is shown below:
total per unit
Sales(30,000 units) ...
Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations