Fletcher Corporation prepared the following income statement for the fourth quarter in 2020. Sales revenue (32,000 units) Less: Costs of goods sold Gross margin Less: Selling & administrative expenses Net income $940,000 591,600 348,400 186,600 $161,800 Fletcher's annual fixed manufacturing expenses, incurred uniformly each quarter amount to $839,400; it also pays a sales commission of $3 per unit to its sales personnel. Required: Prepare a contribution margin income statement for the fourth quarter in 2020. (Round "Per-unit dollars" to 2 decimal places and "Percentages of sales" to 1 decimal place.) FLETCHER CORPORATION
Fletcher Corporation prepared the following income statement for the fourth quarter in 2020. Sales revenue (32,000 units) Less: Costs of goods sold Gross margin Less: Selling & administrative expenses Net income $940,000 591,600 348,400 186,600 $161,800 Fletcher's annual fixed manufacturing expenses, incurred uniformly each quarter amount to $839,400; it also pays a sales commission of $3 per unit to its sales personnel. Required: Prepare a contribution margin income statement for the fourth quarter in 2020. (Round "Per-unit dollars" to 2 decimal places and "Percentages of sales" to 1 decimal place.) FLETCHER CORPORATION
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Fletcher Corporation prepared the following income statement for the fourth
quarter in 2020.
Sales revenue (32,000 units)
Less: Costs of goods sold
Gross margin
Less: Selling & administrative expenses
Net income
$940,000
591,600
Fletcher's annual fixed manufacturing expenses, incurred uniformly each quarter,
amount to $839,400; it also pays a sales commission of $3 per unit to its sales
personnel.
Less: Variable costs
348,400
186,600
$161,800
Required:
Prepare a contribution margin income statement for the fourth quarter in 2020.
(Round "Per-unit dollars" to 2 decimal places and "Percentages of sales" to 1
decimal place.)
Less: Fixed costs
FLETCHER CORPORATION
Contribution Margin Income Statement
For the Fourth Quarter in 2020
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