The following information pertains to the Vermont Furniture Company for the year 2020:

Number of tables produced and sold 2,000

Selling price	$700 per table
Rent on the Home Office Building	$60,000
Wood and Polish	60,000
Employees in Polishing Dept.	45,000
Salaries of Factory Managers	200,000
Insurance on the Factory	12,000
Home Office Salaries	400,000
Employees in Table Assembly Dept.	130,000
Lubricants for table assembly machines	23,000
Employees in Wood Sawing Dept.	50,000
Rent on the Factory	90,000
CEO Salary	450,000
Sales Commissions	$40 per table
Nails and Screws	5,000
Other Home Office Expenses	50,000
Boxes for finished tables	4,000

Required:

1. Prepare a Contribution Income Statement.
2. Analyze this financial statement.
3. What recommendations do you make?

Answer rating: 100% (QA)

a Preparation of Contribution Income Statement Particulars Amount a Number of tables sold 2000 b Sel... View the full answer