20. The Friday Company had the following functional income statement for the month of January 2021: Sales ($10 x 40,000 units) $400,000 Cost of goods sold: Direct materials $100,000 Direct labor 40,000 Variable factory overhead 120,000 Fixed factory overhead 26,000 (286,000) Gross profit $114,000 Selling and administrative expenses: Variable $24,000 Fixed 24,000 (48,000) Net income $66,000 There were no beginning and ending inventories. Required: a. Prepare a contribution income statement. b. Calculate the contribution margin per unit. c. Calculate the contribution margin ratio. PLEASE SHOW ALL WORK, THANK YOU

20. The Friday Company had the following functional income statement for the month of January 2021: Sales ($10 x 40,000 units) $400,000 Cost of goods sold: Direct materials $100,000 Direct labor 40,000 Variable factory overhead 120,000 Fixed factory overhead 26,000 (286,000) Gross profit $114,000 Selling and administrative expenses: Variable $24,000 Fixed 24,000 (48,000) Net income $66,000 There were no beginning and ending inventories. Required: a. Prepare a contribution income statement. b. Calculate the contribution margin per unit. c. Calculate the contribution margin ratio. PLEASE SHOW ALL WORK, THANK YOU

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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