Chapter 21, Problem 1PSB

To determine

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Requirement-1:

To Prepare:

The Contribution Margin Income Statement for the year

To determine

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Requirement-2:

To Calculate:

The Contribution Margin per unit and Contribution Margin Ratio

To determine

Concept Introduction:

Contribution Margin Income Statement:

Contribution Margin Income Statement is a format of income statement used for cost volume profit analysis. This statement shows the Variable costs and fixed costs as separate items. It calculates the contribution margin and Net income as well.

Requirement-3:

To Indicate:

The Interpretation of Contribution Margin per unit and Contribution Margin Ratio