ACCCOB3
ACCCOB3
ACCCOB3
Engberg Company
Contribution Income Statement
Amount Percent of Sales
Sales $84,000 100%
Variable expenses -33,600 40%
Contribution margin 50,400 60%
Fixed expenses -38,000
Net operating income $12,400
1 Profit = Unit CM * Q - Fixed Expenses
0 = (15-12) * Q - 4,200
10 = (3) * Q - 4,200
3Q = 4,200
Q = 4,200/3
Q = 1,400 baskets
0 = (15-12) * Q - 4,200
10 = (3) * Q - 4,800
3Q = 4,800
Q = 4,800/3
Q = 1,600 baskets
0 = (30-20) * Q - 7,500
0 = (10) * Q - 7,500
10Q = 7,500
Q =7,500/10
Q = 750 units or at 30 per unit, 22, 500
3 Lucido Products
Contribution Income Statement
Claimjumper Makeover Total
Sales $24,000 $56,000 $80,000
Variable expenses 16,000 40,000 56,000
Contribution margin $8,000 $16,000 24,000
Fixed expenses 24,000
Net operating income (loss) $0
1 Case 1 Case 2 Case 3 Case 4
Unit sold 15,000 4,000 10,000 6,000
Sales $180,000 $100,000 $200,000 $300,000
Variable expenses 120,000 60,000 70,000 210,000
Fixed expense 50,000 32,000 118,000 100,000
Net operating income (loss) $10,000 $8,000 $12,000 -$10,000
Contribution margin per unit $4 $10 $13 $15