Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the following table from the data provided in the income statements. Each company sold 84,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) Unit contribution margin Break-even sales (units) Break-even sales (dollars) Cover-to-Cover Company Contribution Margin Income Statement For the Year Ended December 31, 20Y7 1 Sales $424,000.00 2 Variable costs: 3 Manufacturing expense $254,400.00 4 Selling expense 21,200.00 5 Administrative expense 63,600.00 339,200.00 6 Contribution margin $84,800.00 7 Fixed costs: 8 Manufacturing expense $5,000.00 9 Selling expense 4,000.00 10 Administrative expense 12,200.00 21,200.00 11 Income from operations $63,600.00 Biblio Files Company Contribution Margin Income Statement For the Year Ended December 31, 20Y7 1 Sales $424,000.00 2 Variable costs: 3 Manufacturing expense $169,600.00 4 Selling expense 16,960.00 5 Administrative expense 67,840.00 254,400.00 6 Contribution margin $169,600.00 7 Fixed costs: 8 Manufacturing expense $88,000.00 9 Selling expense 8,000.00 10 Administrative expense 10,000.00 106,000.00 11 Income from operations $63,600.00

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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Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements panels. Complete the following table from the data provided in the income statements. Each company sold 84,800 units during the year.

	Cover-to-Cover Company	Biblio Files Company
Contribution margin ratio (percent)
Unit contribution margin
Break-even sales (units)
Break-even sales (dollars)

Cover-to-Cover Company

Contribution Margin Income Statement

For the Year Ended December 31, 20Y7

1	Sales		$424,000.00
2	Variable costs:
3	Manufacturing expense	$254,400.00
4	Selling expense	21,200.00
5	Administrative expense	63,600.00	339,200.00
6	Contribution margin		$84,800.00
7	Fixed costs:
8	Manufacturing expense	$5,000.00
9	Selling expense	4,000.00
10	Administrative expense	12,200.00	21,200.00
11	Income from operations		$63,600.00

Biblio Files Company

Contribution Margin Income Statement

For the Year Ended December 31, 20Y7

1	Sales		$424,000.00
2	Variable costs:
3	Manufacturing expense	$169,600.00
4	Selling expense	16,960.00
5	Administrative expense	67,840.00	254,400.00
6	Contribution margin		$169,600.00
7	Fixed costs:
8	Manufacturing expense	$88,000.00
9	Selling expense	8,000.00
10	Administrative expense	10,000.00	106,000.00
11	Income from operations		$63,600.00

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