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Unformatted text preview: Financial Information No. 3 Contribution Margin Income Statement For the Year Ended 2000 Cost of A inventory per item: 100 Markup on A cost in sale price: 80% Sales Revenue Less Variable Costs: Cost of B inventory per item: 150 Cost of Goods Sold Markup on B cost in sale price: 100% Commissions Freight The Sales Mix is Product A 2 Clerical Product B 3 Contribution Margin Less Fixed Costs: The number of Product groupings sold 1,000 Selling Expenses Advertising Selling Expenses: Commissions Advertising (fixed)* 5,000 Depreciation Commissions (fixed)* 2,000 Utilities Commissions (variable) 5% of sales Administrative Expenses Depreciation (fixed)* 1,500 Salary Expense Utilities (fixed)* 1,750 Depreciation Freight on Delivery (variable) 2 per sale Utilities Net Gain (Loss) Administrative Expenses: Salaries(fixed)* 2,500 Unit Contribution Margin Depreciation (fixed)* 3,000 Utilities (fixed)* 1,500 Break-Even Point in Units Clerical (variable) 10.00 per sale Contribution Margin Ratio *per month Units for Target Profit of $100,000 Operating Leverage Financial Information...
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This note was uploaded on 08/26/2010 for the course LAW 0001 taught by Professor Henke during the Spring '10 term at Acadia.
- Spring '10