Pro-forma contribution margin income statement
Not what you're looking for?
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
Administrative expenses:
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.
Purchase this Solution
Solution Summary
This explains the computation of pro-forma contribution margin income statement
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
Variable administrative expenses 45,000
Contribution margin 430000
Less fixed expenses:
Manufacturing ...
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.