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CHAPTER 6 Short-Term Decision Making Differential Analysis Problems Montoya Company has the following selected data...

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Accounting

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CHAPTER 6 Short-Term Decision Making Differential Analysis Problems Montoya Company has the following selected data for the current year: Sales (10,000 units) Direct materials Direct labor costs Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses $90,000 30,000 10,000 3,500 7,500 2,500 15,000 dit The company produced and sold 10,000 units. Direct materials and direct labor are variable costs. a. Prepare an income statement for the current year using the contribution margin format b. Prepare an income statement for the current year using the traditional format. c. What additional information do you learn from the contribution margin format? Pick-Me-Up Company is introducing a new coffee in its stores and must decide what price to set for the coffee beans. An estimated demand schedule for the product follows: De qua Price s 5 One-Pound Units Demanded 80,000 72,000

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