Imboden Manufacturing Company established the following standard price and cost data: Sales price ...........................................................................$15 per unit Variable

Question:

Imboden Manufacturing Company established the following standard price and cost data:
Sales price ...........................................................................$15 per unit
Variable manufacturing cost....................................................... $ 7 per unit
Fixed manufacturing cost.................................................... $32,500 total
Fixed selling and administrative cost....................................... $24,000 total
Imboden planned to produce and sell 18,000 units. It actually produced and sold 19,000 units.
Required
a. Prepare the pro forma income statement that would appear in a master budget. Use the format.
b. Prepare the pro forma income statement that would appear in a flexible budget. Use the format.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...