Traditional Format vs. Contribution Format Income Statement
Inputs
Traditional Format
Contribution Format
Total
Per Unit
%
# of Units Sold:
1,000
Sales
$100,000
Sales
$100,000
$100.00
100.00%
Cost of Goods Sold
75,000
Variable Costs
70,000
$70.00
70.00%
Selling Price / Unit:
$100
Gross Margin
$25,000
Contribution Margin
$30,000
$30.00
30.00%
Selling & Administrative
16,000
Fixed Cost
21,000
Direct Materials / Unit
$22
Operating Income
$9,000
Operating Income
$9,000
Direct Labor / Unit
$30
Direct Materials
$22,000
Direct Materials
$22,000
Variable MOH / Unit
$5
Direct Labor
30,000
Direct Labor
30,000
Variable Manufacturing OH
5,000
Variable Manufacturing OH
5,000
Variable Selling & Administrative
$13
Fixed Manufacturing OH
18,000
Variable Selling and Admin.
13,000
Cost of Good Sold
$75,000
Total Variable Cost
$70,000
Fixed Manufacturing OH
$18,000
Fixed Selling & Administrative
$3,000
Variable Selling & Administrative
$13,000
Fixed Manufacturing Overhead
$18,000
Fixed Selling & Administrative
3,000
Fixed Selling & Administrative
3,000
Total Selling & Administrative
$16,000
Total Fixed Cost
$21,000
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Assignment 1
Inputs
Traditional Format
Contribution Format
Total
Per Unit
%
# of Units Sold:
1,000
Sales
$100,000
Sales
100.00%
Cost of Goods Sold
75,000
Variable Costs
Selling Price / Unit:
100
Gross Margin
$25,000
Contribution Margin
Selling & Administrative
16,000
Fixed Cost
Direct Materials / Unit
22
Operating Income
$9,000
Operating Income
Direct Labor / Unit
30
Direct Materials
$22,000
Direct Materials
Variable MOH / Unit
5
Direct Labor
30,000
Direct Labor
Variable Manufacturing OH
5,000
Variable Manufacturing OH
Variable Selling & Administrative
13

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- Spring '08
- BREWER
- Managerial Accounting, Income Statement, gross margin, Variable Manufacturing OH
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