Following is Hartzbergs latest income statement. The company produced and sold 100,000 units during the year. Required

Following is Hartzberg’s latest income statement. The company produced and sold 100,000 units during the year.

Required
Restate the income statement in contribution margin format, as if Hartzburg had used a variable costing system to reportincome.

Transcribed Image Text:

Sales (100,000 units at $50) Cost of goods sold: 5,000,000 Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead $1,500,000 800,000 300,000 1,200,000 Total cost of goods sold 3,800,000 1,200,000 Gross profit Selling expenses Variable 200,000 700,000 Total selling expenses 900,000 $ 300,000 Operating income