Milford Pump Company's income statement has been prepared for November of the current year.

Instructions:
1. Prepare Milford Pump Company’s November income statement reporting contribution margin.
2. Calculate the contribution margin per unit.
3. Calculate variable cost per unit. Plot variable costs and fixed costs on a graph.

Transcribed Image Text:

Milford Pump Company Income Statement For Month Ended November 30, 20-- Operating Revenue: Net Sales (8,700 units @ $210.00)........ Cost of Merchandise Sold (8,700 units @$145.00). Gross Profit on Operations... Operating Expenses: $1,827,000.00 1,261,500.00 $ 565,500.00 Selling Expenses: Sales Commission (8,700 units @ $6.00). Delivery Costs (8,700 units @ $4.80) Other Variable Costs (8,700 units @ $2.75) Other Fixed Costs Administrative Expenses: Rent Insurance Other Variable Costs (8,700 units @ $5.50) Other Fixed Costs Total Operating Expenses Income from Operations Other Expenses. Net Income $52,200.00 41,760.00 23,925.00 76,510.00 $194,395.00 $15,000.00 9,750.00 47,850.00 45,290.00 117,890.00 312,285.00 $ 253,215.00 12,000.00 $ 241,215.00