Engberg Company installs lawn sod in home yards. The company’s
most recent monthly contribution format income statement
follows:
|
amount |
percent of sales |
sales |
80,000 |
100% |
varible expenses |
32,000 |
40% |
ontribution margin |
48,000 |
60% |
fixed expenses |
38,000 |
|
net operating income | $10.000 | |
|
|
|
3. Construct a new contribution format income statement for the
company assuming a 5% increase in sales.
Contribution Income Statement |
|
amount |
percent of sales |
sales |
|
|
variable expenses |
|
|
contribution margin |
0 |
0 |
fixed expenses |
|
|
Net Operating Income |
0 |
|
|