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# Pro-forma contribution margin income statement

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Pro-Forma Income Statement
Silver Company has asked you to prepare a pro-forma income statement for the coming year.
The following information is available:
Expected sales revenue . . \$1,240,000
Manufacturing costs:
Variable cost of goods sold . 625,000
Fixed overhead . . . . . . . .125,000
Selling expenses:
Variable expenses . . . . . . 140,000
Fixed expenses . . . . . . . . 45,000
Variable expenses . . . . . . .45,000
Fixed expenses . . . . . . . .160,000
Other:
Interest expense . . . . . . . 28,000
Income tax rate . . . . . . . . . 35%
Prepare a pro-forma contribution margin income statement for Silver Company.

https://brainmass.com/economics/personal-finance-savings/pro-forma-contribution-margin-income-statement-165957

#### Solution Preview

Prepare a pro-forma contribution margin income statement for Silver Company.

Silver Company
Pro-Forma Contribution Margin Income Statement
For the Year Ended December 31, 2006

Sales revenue 1240000
Less variable expenses:
Variable cost of goods sold 625000
Variable selling expenses 140000

Contribution margin 430000

Less fixed expenses:
Manufacturing ...

#### Solution Summary

This explains the computation of pro-forma contribution margin income statement

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## Pro-Forma Income Statement

Explain how outsourcing would impact the pro-forma income statement. You may utilize Excel for calculations and/or presentation of financial analyses related to the assignment.
Be sure to support your position using information from the assigned text(s) reading and other sources and utilize Microsoft Excel with formulas for any calculations.

Silver Company has asked you to prepare a pro-forma income statement for the coming year. The following information is available:

Expected sales revenue \$1,240,000

Manufacturing costs:
Variable cost of goods sold 625,000

Selling expenses:
Variable expenses 140,000
fixed expenses 45,000