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Pro-forma contribution margin income statement

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.

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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 ...

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

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