Explanation Statement to show the contribution margin income statement Company H Income Statement For the Year Ended December 31, 2018 Particulars Amount ($) Sales 2,475,000 Less: Variable Cost 1,980,000 Contribution Margin 495,000 Less: Fixed Cost 405,000 Pre Tax Income 90,000 Working note: Given, The numbers of units are 11,000 units. The selling price is $225 (refer question 18-16E). Calculation of total sales, Total sales = Numbers of units × Sales price = 11,000 units × $ 225 = $ 2 , 475 , 000 The total sales are $2,475,000

7th Edition

ISBN: 9781259726705

Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher: McGraw-Hill Education

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Question

Chapter 18, Problem 20E

To determine

Contribution Margin Income statement:

Contribution margin income statement shows the sales revenue, deduction of product and period cost from the sales revenue and then identification of contribution margin. It shows the net income while deduct the fixed income from the contribution margin.

To prepare: A contribution margin income statement.

Expert Solution & Answer

Chapter 18 Solutions

Financial and Managerial Accounting

Ch. 18 - Prob. 1MCQ Ch. 18 - Prob. 2MCQ Ch. 18 - Prob. 3MCQ Ch. 18 - Prob. 4MCQ Ch. 18 - Prob. 5MCQ Ch. 18 - Prob. 1DQ Ch. 18 - Prob. 2DQ Ch. 18 - When output volume increases, do fixed costs per...Ch. 18 - How is the cost-volume-profit analysis useful?Ch. 18 - Prob. 5DQ

Ch. 18 - Prob. 6DQ Ch. 18 - Prob. 7DQ Ch. 18 - Prob. 8DQ Ch. 18 - Prob. 9DQ Ch. 18 - Prob. 10DQ Ch. 18 - Prob. 11DQ Ch. 18 - Prob. 12DQ Ch. 18 - Prob. 13DQ Ch. 18 - Prob. 14DQ Ch. 18 - Prob. 15DQ Ch. 18 - Prob. 16DQ Ch. 18 - Prob. 17DQ Ch. 18 - Prob. 18DQ Ch. 18 - Prob. 19DQ Ch. 18 - APPLE Should Apple use single product or...Ch. 18 - Prob. 21DQ Ch. 18 - Prob. 22DQ Ch. 18 - Prob. 1QS Ch. 18 - Prob. 2QS Ch. 18 - Cost behavior estimation---high-low method P1 The...Ch. 18 - Prob. 4QS Ch. 18 - Prob. 5QS Ch. 18 - Prob. 6QS Ch. 18 - Prob. 7QS Ch. 18 - Prob. 8QS Ch. 18 - Prob. 9QS Ch. 18 - Prob. 10QS Ch. 18 - Prob. 11QS Ch. 18 - Prob. 12QS Ch. 18 - Prob. 13QS Ch. 18 - Prob. 14QS Ch. 18 - Prob. 15QS Ch. 18 - Prob. 16QS Ch. 18 - Prob. 17QS Ch. 18 - Prob. 18QS Ch. 18 - Prob. 19QS Ch. 18 - Prob. 20QS Ch. 18 - Prob. 21QS Ch. 18 - Following are five graphs representing various...Ch. 18 - Prob. 2E Ch. 18 - Prob. 3E Ch. 18 - Prob. 4E Ch. 18 - Prob. 5E Ch. 18 - Prob. 6E Ch. 18 - Prob. 7E Ch. 18 - Prob. 8E Ch. 18 - Prob. 9E Ch. 18 - Prob. 10E Ch. 18 - Prob. 11E Ch. 18 - Prob. 12E Ch. 18 - Prob. 13E Ch. 18 - Prob. 14E Ch. 18 - Prob. 15E Ch. 18 - Prob. 16E Ch. 18 - Prob. 17E Ch. 18 - Prob. 18E Ch. 18 - Prob. 19E Ch. 18 - Prob. 20E Ch. 18 - Prob. 21E Ch. 18 - Prob. 22E Ch. 18 - Prob. 23E Ch. 18 - Prob. 24E Ch. 18 - Prob. 25E Ch. 18 - Prob. 26E Ch. 18 - Prob. 27E Ch. 18 - Prob. 1PSA Ch. 18 - Prob. 2PSA Ch. 18 - Prob. 3PSA Ch. 18 - Prob. 4PSA Ch. 18 - Prob. 5PSA Ch. 18 - Prob. 6PSA Ch. 18 - Prob. 7PSA Ch. 18 - Prob. 1PSB Ch. 18 - Prob. 2PSB Ch. 18 - Prob. 3PSB Ch. 18 - Prob. 4PSB Ch. 18 - Prob. 5PSB Ch. 18 - Prob. 6PSB Ch. 18 - Prob. 7PSB Ch. 18 - Prob. 18SP Ch. 18 - Apple offers extended service contracts that...Ch. 18 - Prob. 2BTN Ch. 18 - Prob. 3BTN Ch. 18 - Prob. 4BTN Ch. 18 - Prob. 5BTN Ch. 18 - Prob. 6BTN Ch. 18 - Prob. 7BTN Ch. 18 - Prob. 8BTN Ch. 18 - Prob. 9BTN

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