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Contribution income statement Top Disc manufactures flying disks. The following information is available for the year, the company's first year in business when it produced 325,000 units. Revenue of $812,500 was generated by the sale of 325,000 flying disks. Production Direct material Direct labor Manufacturing overhead Selling and administrative Variable Cost Fixed Cost $150,000 100,000 75,000 $112,500 90,000 100,000 a. What is the total contribution margin per unit? Note: Enter the answer in dollars and cents, rounded to the nearest penny. b. What is the contribution margin ratio? Note: Enter per unit amounts (not total amounts) in the table below. Ratio Numerator Denominator Contribution margin ratio $ ÷ $ c. Prepare a contribution income statement. Note: Do not use a negative sign with any of your answers below. Contribution Margin Income Statement For the Year Less variable costs Less fixed expenses Result 20 %

Contribution income statement Top Disc manufactures flying disks. The following information is available for the year, the company's first year in business when it produced 325,000 units. Revenue of $812,500 was generated by the sale of 325,000 flying disks. Production Direct material Direct labor Manufacturing overhead Selling and administrative Variable Cost Fixed Cost $150,000 100,000 75,000 $112,500 90,000 100,000 a. What is the total contribution margin per unit? Note: Enter the answer in dollars and cents, rounded to the nearest penny. b. What is the contribution margin ratio? Note: Enter per unit amounts (not total amounts) in the table below. Ratio Numerator Denominator Contribution margin ratio $ ÷ $ c. Prepare a contribution income statement. Note: Do not use a negative sign with any of your answers below. Contribution Margin Income Statement For the Year Less variable costs Less fixed expenses Result 20 %

FINANCIAL ACCOUNTING
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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Contribution income statement Top Disc manufactures flying disks. The following information is available for the year, the company's first year in business when it produced 325,000 units. Revenue of $812,500 was generated by the sale of 325,000 flying disks. Production Direct material Direct labor Manufacturing overhead Selling and administrative Variable Cost Fixed Cost $150,000 100,000 75,000 $112,500 90,000 100,000
Transcribed Image Text:Contribution income statement Top Disc manufactures flying disks. The following information is available for the year, the company's first year in business when it produced 325,000 units. Revenue of $812,500 was generated by the sale of 325,000 flying disks. Production Direct material Direct labor Manufacturing overhead Selling and administrative Variable Cost Fixed Cost $150,000 100,000 75,000 $112,500 90,000 100,000
a. What is the total contribution margin per unit? Note: Enter the answer in dollars and cents, rounded to the nearest penny. b. What is the contribution margin ratio? Note: Enter per unit amounts (not total amounts) in the table below. Ratio Numerator Denominator Contribution margin ratio $ ÷ $ c. Prepare a contribution income statement. Note: Do not use a negative sign with any of your answers below. Contribution Margin Income Statement For the Year Less variable costs Less fixed expenses Result 20 %
Transcribed Image Text:a. What is the total contribution margin per unit? Note: Enter the answer in dollars and cents, rounded to the nearest penny. b. What is the contribution margin ratio? Note: Enter per unit amounts (not total amounts) in the table below. Ratio Numerator Denominator Contribution margin ratio $ ÷ $ c. Prepare a contribution income statement. Note: Do not use a negative sign with any of your answers below. Contribution Margin Income Statement For the Year Less variable costs Less fixed expenses Result 20 %
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