Following is Hartzberg’s latest income statement. The company produced and sold 100,000 units during the year. Sales (100,000 units at $50) $5,000,000 Cost of goods sold:

Direct material $1,500,000

Direct labor 800,000

Variable manufacturing overhead 300,000

Fixed manufacturing overhead 1,200,000

Total cost of goods sold 3,800,000

Gross profit 1,200,000

Selling expenses:

Variable 200,000

Fixed 700,000

Total selling expenses 900,000

Operating income $300,000

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

Answer rating: 100% (QA)

Income Statement Variable Costing Units produced and sold 100000 Sales 5000000 ... View the full answer