Calculation of total variable cost

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Reference no: EM1311971

Calculation of total variable cost and contribution income statement.

During 2007 the company manufactured 120,000 units and sold 145,000 units. Assume the same unit costs in all years. Total variable costs on the company's 2007 contribution income statement will be?

Magic Screen's contribution income statement utilizing variable costing appears below:

Sales ($30/unit)		$1,200,000
Less variable costs:
COGS	800,000
Selling & Admin	40,000	840,000
Contribution Margin		360,000
Fixed overhead	98,000
Fixed Selling & Admin	170,000	268,000
Net Income		$92,000

Magic Screen Company Income Statement For the Year Ended December 31, 2007

Magic Screen Company produced 49,000 units during the year. Variable and fixed production costs have remained constant the entire year. There were no beginning inventories.

Hint: Variable cost per unit is $0.25

Reference no: EM1311971

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