Jindal Manufacturing Company provides you with the following income statement.

You learn that Jindal incurred manufacturing overhead costs of $248,750 for the year and that all of this cost is fixed. Moreover, the only variable selling costs are sales commissions at 5% of revenue. Finally, all administration costs are fixed.

Required:
Prepare an income statement in the contribution margin format. For simplicity, assume that the Jindal began and ended the year with zero inventories of anykind.

Transcribed Image Text:

Jindal Manufacing Company Income Statement for the Most Recent Year Revenue Cost of goods sold Gross margin $2,435,000 $1,188,240 558,950 1,246,760 Administration costs 425,000 Selling costs Profit $204,290