Why preparing a contribution margin income statement


Inman Manufacturing Company makes a product that it sells for $60 per unit. The company incurs variable manufacturing costs of $24 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $189,000, and fixed selling and administrative costs are $141,000 per year.
Required
A.Equation method.
B.Contribution margin per unit.
C.Contribution margin ratio.
D. Confirm your results by preparing a contribution margin income statement for the break-even sales volume.

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Accounting Basics: Why preparing a contribution margin income statement
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