China Imports, Inc., sold 18,000 units in May. Per unit selling price and variable expense were $25

Question:

China Imports, Inc., sold 18,000 units in May. Per unit selling price and variable expense were $25 and $17, respectively. Fixed expense incurred for May totaled $120,000.

Required:
Prepare the May income statement for China Imports, Inc., in 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...