Question

im completely lost here

Grape Inc., which produces and sells a single product, has provided the following contribution format income statement for March:

Sales (5,000 units)	$	330,000
Variable expenses		150,000
Contribution margin		180,000
Fixed expenses		106,500
Net operating income	$	73,500

Required:

Redo the company's contribution format income statement assuming that the company sells 5,200 units. (Do not round intermediate calculations.)

Answer 1

Sales Price per unit = $315000/5000 = $63 & Variable cost per unit = $150000/5000 = $30
Fixed expenses will remain same at $ 104600 for both units i.e. 5000 or 5200
Refer below table for revised income statement:
Units	5000	5200
Particulars	Amount ($)	Amount($)
Sales	315000	327600
Less : Variable Expenses	150000	156000
Contribution Margin	165000	171600
Less : Fixed Expenses	104600	104600
Net Operating Income	60400	67000