Contribution Margin Income Statement

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Excel Assignment #2
Preparing a Contribution Margin Income Statement and Operating Leverage
Summer 2013

1. Assume that a company is budgeting to sell 2,500 units of a product at a selling price per unit of $32. The variable cost per unit is $26 and total fixed costs are $5,000.
Prepare a contribution margin income statement and calculate operating leverage.

2. Suppose the company is unsure exactly how many units they will sell. As such, their marketing department has provided a worst case scenario where sales would be 1,500 units and a best case scenario where sales would be 2,700 units. Assume that the selling price per unit, variable cost per unit and fixed costs will remain constant (per part 1).
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NOTE: You MUST use Microsoft EXCEL and not any other spreadsheet program.

1) You MUST use the Excel Templates provided on the Accounting 1020 website for this quarter.

2) You MUST download the Excel Templates using YOUR account from the Accounting 1020 website. Each template is individually coded to prevent academic dishonesty. Any student found using the template from another student’s account AND the student that allows another student to use his/her account will also receive a zero on the assignment and be subject to further penalties for academic dishonesty.

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