Prepare a contribution format income statement


Smith's Inc. produces and sells water bottles - plastic and metal. Revenue and cost information relating to the products follow:

Plastic Metal
Selling price $5.50 $9.00
Variable expenses per bottle $2.20 $4.85
Traceable fixes expenses per year $110,000 $32,000

Common fixed expenses in the company total $98,000 annually. Last year the company produced and sold 45,200 plastic bottles and 15,000 metal bottles.

Required:

Prepare a contribution format income statement for the year segmented by product lines and in total.

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Accounting Basics: Prepare a contribution format income statement
Reference No:- TGS056359

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