Fabricare produces and sells various fabric softening products used in laundering clothes. Fabricare's contribution margin statement for

Question:

Fabricare produces and sells various fabric softening products used in laundering clothes. Fabricare's statement for the most recent month is as follows.
Fabricare Statement
for the Most Recent Month
Revenue ................................................$8,000,000
Variable manufacturing costs......................... 3,200,000
Variable selling costs .....................................800,000
...................................$4,000,000
Fixed manufacturing costs ............................1,000,000
Fixed selling costs ........................................500,000
Fixed administrative costs ...............................450,000
Profit ....................................................$2,050,000
Fabricare began and ended the month with no inventories of any kind.
Required:
Prepare an income statement in the format for the most recent month for Fabricare.
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... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...