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  3. crispin companys sales from last year were $8 mill

Crispin Companys sales from last year were $8 million. The company maintains no beginning or...

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Accounting

Crispin Companys sales from last year were $8 million. The company maintains no beginning or ending inventories. It has assembled all of its costs from last year and would like your assistance in sorting these costs into various categories, depicting them graphically, and preparing traditional and contribution format income statements.

Information below:

image

Assume the company wants to adapt the information in the Cost Summary tab to prepare a contribution format income statement. Within the Income Statements tab of your template, and using the Sum IFS function to quantify all variable and fixed expenses:

a. Prepare a contribution format income statement. (Hint: The cost of goods sold should include all direct materials, direct labor, and variable manufacturing overhead. The fixed manufacturing overhead costs should be included within the Fixed expenses portion of the income statement.)

b.Based on the contribution format income statement, what is the contribution margin?

c. Based on the contribution format income statement, what is the net operating income?

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