A contribution margin income statement organizes costs by behavior (variable or fixed), rather than by function (operating, selling, or administrative). The contribution margin is the difference between sales and

gross profitvariable expensesfixed expensesoperating incomevariable expenses

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Byron Manufacturing has one product that sells for $24.00 per unit. The company estimates fixed costs at $6,000, direct materials at $4.00 per unit, direct labor at $5.00 per unit, and variable overhead costs at $3.00 per unit.

Fill in the contribution margin income statement when 730 units are sold:

Byron Manufacturing Contribution Margin Income Statement
Sales
Less: Variable costsFixed costsVariable costs
Contribution margin
Less: Variable costsFixed costsFixed costs
Operating income

Calculate Byron Manufacturing's per unit contribution margin : 

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Calculating the Break-even Point:

Answer rating: 100% (QA)

Byron Manufacturing Contribution Margin Income Statement Sales 2400 x 730 units 17520 L... View the full answer