Prepare contribution margin income statement for the month-Cost Accounting
Bowery Company manufactures a single product that sells for $100 per unit. The company projects sales of 400 units per month. Projected costs follow.
type of Cost |
Manufacturing |
Non-manufacturing |
Variable |
$10,000 |
$6,000 |
Non-variable |
13,000 |
5,000 |
1. Prepare a contribution margin income statement for the month.
2. What is the contribution margin ratio?
3. What volume, in terms of units, must the company sell to break even?