Huge Company’s traditional format income statement for the month of May was as follows: Using the space provided below, please prepare an income statement for the month in contribution margin format b. By how much would net income increase if sales increased by $30,000? Huge CompanyIncome Statementfor the month ended May 31, 2022Salesless: Cost of Goods Sold:Variable Product CostsFixed Product CostsTotal Cost of Goods SoldGross Profitless: Selling and Administrative:Variable Selling CostsFixed Administrative CostsTotal Selling and AdministrativeNet Income$ 160,000$ 40,00050,00090,000$ 70,000$ 24,00022,00046,000$ 24,000

Contribution margin is the difference between the sales and variable cost or in other words…

Huge Company’s traditional format income statement for the month of May was as follows: Using the space provided below, please prepare an income statement for the month in contribution margin format b. By how much would net income increase if sales increased by $30,000?

Huge Company’s traditional format income statement for the month of May was as follows: Using the space provided below, please prepare an income statement for the month in contribution margin format b. By how much would net income increase if sales increased by $30,000?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 26BEA

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Question

Huge Company’s traditional format income statement for the month of May was as follows:

Using the space provided below, please prepare an income statement for the month in contribution margin format

b. By how much would net income increase if sales increased by $30,000?

Huge Company
Income Statement
for the month ended May 31, 2022
Sales
less: Cost of Goods Sold:
Variable Product Costs
Fixed Product Costs
Total Cost of Goods Sold
Gross Profit
less: Selling and Administrative:
Variable Selling Costs
Fixed Administrative Costs
Total Selling and Administrative
Net Income
$ 160,000
$ 40,000
50,000
90,000
$ 70,000
$ 24,000
22,000
46,000
$ 24,000

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