Produces different equipment for the sport of baseball

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Reference no: EM131292264

Smith Sports, Inc. produces different equipment for the sport of baseball. The company’s Bat Division manufactures two Bats in its Betts line of bats, the Standard and the Pro model. Selected information on the bats is given below:

Standard Pro

Selling Price per Bat $60 $120

Variable Expenses per bat $33 $55

Variable Selling Expenses per bat $3 $5

All sales are made through Smith’s internet site. The Bat Division has fixed costs of $135,000 per month.

During the month of February Smith sold 2,200 Standard and 1,750 Pro model bats.

Prepare a Contribution Margin Income Statement for the month of February. Put fixed expenses only in the Total column. Show the contribution margin percentage for each Model (Standard and Pro) and for the Total.

Reference no: EM131292264

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