| Traditional & Contribution Margin Income Statement. For the month of September Kumar Production Company had the following results: | ||||||||
| Sales Price, per unit | 60.00 | |||||||
| Fixed Production Costs | 40,000 | |||||||
| Variable Production Costs, per unit | 15.00 | |||||||
| Fixed Selling and Administrative Costs | 26,000 | |||||||
| Variable Selling and Administrative Costs, Per unit | 5.00 | |||||||
| Units produced and sold | 7,000 | |||||||
| Required: | ||||||||
| 1. Prepare a traditional income statement for Kumar Production Company. | ||||||||
| 2. Prepare a contribution margin income statement for Kumar Production Company. | ||||||||
| 3. Why do companies use the contribution margin income statement format? | ||||||||
| 1 | Kumar Production Company | Unlocked work area | ||||||
| Traditional Income Statement | ||||||||
| Month Ended, September 30 | ||||||||
| 2 | Kumar Production Company | |||||||
| Contribution Margin Income Statement | ||||||||
| Month Ended, September 30 | ||||||||
| 3 | Why do companies use the contribution margin income statement format? |
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