1) What is the assumption of cost structure? 2) Calculate contribution Margin

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 26E: Comprehensive income Anson Industries, Inc., reported the following information on its 20Y1 income...
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1) What is the assumption of cost structure?

2) Calculate contribution Margin    

ABC
Income Statement
REVENUE
COST OF SALES
GROSS PROFIT
ADD: OTHER INCOME
LESS: DISTRIBUTION EXPENSES
LESS: ADMINISTRATIVE EXPENSES
LESS: OTHER EXPENSES
LESS: FINANCE COSTS
PROFIT/(LOSS) BEFORE TAX
INCOME TAX EXPENSE
PROFIT/(LOSS) FOR THE YEAR
OTHER COMPREHENSIVE INCOME
TOTAL COMPREHENSIVE INCOME/ (EXPENSE) FOR THE YEAR
EARNINGS/(LOSS) PER ORDINARY SHARE (SEN): -
Basic
2017
2018
697,503,528 710,205,386
297,179,735 274,942,979
400,323,793 435,262,407
35,846,054 28,337,773
39,478,886 25,154,006
106,352,913 111,054,590
20,807 28,272
4,800,516 7,072,315
285,516,725 320,290,997
60,841,090 97,060,913
224,675,635 223,230,084
224,675,635 223,230,084
21.91
21.95
Transcribed Image Text:ABC Income Statement REVENUE COST OF SALES GROSS PROFIT ADD: OTHER INCOME LESS: DISTRIBUTION EXPENSES LESS: ADMINISTRATIVE EXPENSES LESS: OTHER EXPENSES LESS: FINANCE COSTS PROFIT/(LOSS) BEFORE TAX INCOME TAX EXPENSE PROFIT/(LOSS) FOR THE YEAR OTHER COMPREHENSIVE INCOME TOTAL COMPREHENSIVE INCOME/ (EXPENSE) FOR THE YEAR EARNINGS/(LOSS) PER ORDINARY SHARE (SEN): - Basic 2017 2018 697,503,528 710,205,386 297,179,735 274,942,979 400,323,793 435,262,407 35,846,054 28,337,773 39,478,886 25,154,006 106,352,913 111,054,590 20,807 28,272 4,800,516 7,072,315 285,516,725 320,290,997 60,841,090 97,060,913 224,675,635 223,230,084 224,675,635 223,230,084 21.91 21.95
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