Reference no: EM132637598

Problem 1: Below is the income statement for Robinson Company, a merchandising firm. If you take this information and prepare contribution margin income statement, what will the variable costs be , the contribution margin be and the fixed costs be to arrive at net income of $12,000?

Hint: All information will be used. Sort your costs by variable and fixed. Then, follow the contribution margin income statement.
Do not use a $. Do use a comma. Do use a parenthesis ( ) around amounts to show where deducted. For example, (10,000)

Robinson Company
Income Statement
For the Year Ended December 31, 2019

Sales revenue (2,400 units x $100) $240,000
Cost of goods sold (2,400 units x $65) (156,000)
Gross margin 84,000
Sales commissions (10% of sales) (24,000)
Administrative salaries expense (15,000)
Advertising expense (20,000)
Depreciation expense (10,600)
Shipping and handling expenses (2,400 units x $1.00) (2,400)
Net Income $ 12,000