50.1K

Verified Solution

Link Copied!

PLEASE MAKE SURE YOU DO ALL PARTS OF THE QUESTION

Bernie Corp manufactures drum sets. They have hired you as the new student inter. The following costs result from the production and sale of 4,800 drum sets manufactured for the year ended December 31, 2019. The drum sets sell for $330 each. The company has a 25% income tax rate. 5150,400 490,400 201,600 140,000 Variable production conta plastic for casing Wages of assembly workere Drun standa Variable selling con Sales commision Pxed manufacturing conto Taxes on tactory Factory antennon Tactory nachinery depreciation Fixed and administrative cost LABO of equipment for sales staft Accounting start salaries istrative management salarios 7.000 16.000 74,000 30.000 64,000 144,000 Required: 1. Prepare a contribution margin income statement for the year 2. Compute its contribution margin per unit and its contribution margin ratio 3. For each dollar of sales, how much is left to cover fixed costs and contribute to operating income? Complete this question by entering your answers in the tabs below. Required Required 2 Required Prepare a contribution marin intamant the war Required 1 Required 2 Required 3 1 Prepare a contribution margin income statement for the year, BERNIE CORP Contribution Margin Income Statement For Year Ended December 31, 2019 is Sales 01:27:36 Variable costs: Total variable costs Contribution margin Fixed costs Total fixed costs Mr 11 Required 1 Required 2 Required 3 Compute its contribution margin per unit and its contribution margin ratio. (Round Contribution margin ratio to nearest whole percentage) BERNIE Corp Contribution Margin Income Statement (partial) For Year Ended December 31, 2019 Per Unit Sales Variable costs Total variable costs Contribution margin Required 1 Required 3 > 201,600 148,800 Drum standa Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Pixed selling and administrative costs Lease of equipment for salen start Accounting statt salaries Administrative management salaries 7,000 14,000 74,000 14,000 64,000 144,000 Required: 1. Prepare a contribution margin income statement for the year. 2. Compute its contribution margin per unit and its contribution margin ratio. 3. For each dollar of soles, how nuch is left to cover fixed costs and contribute to operating income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For each dollar of sales, how much is left to cover fixed costs and contribute to operating Income? (Round your answer to 2 decimal places.) For each dollar of sales, how much is left to cover foxed costs and contribute to operating income?

Answer & Explanation Solved by verified expert

See Answer