Q1) During 2007 company produced 120,000 units and sold 145,000 units. Suppose same unit costs in all years. Total variable costs on company's 2007 contribution income statement will be?
Magic Screen's contribution income statement using variable costing listed below:
| Sales ($30/unit) |
|
$1,200,000 |
| Less variable costs: |
|
|
| COGS |
800,000 |
|
| Selling & Admin |
40,000 |
840,000 |
| Contribution Margin |
|
360,000 |
| Fixed overhead |
98,000 |
|
| Fixed Selling & Admin |
170,000 |
268,000 |
| Net Income |
|
$92,000 |
Magic Screen Company Income Statement For Year Ended December 31, 2007
Magic Screen Company manufactured 49,000 units in the year. Variable and fixed production costs have remained constant complete year. There were no beginning inventories.
Hint: Variable cost per unit is $0.25