Z Inc. manufactures a product with a selling price of $60 per unit. Direct Materials costs $12 per unit. Direct Labor costs $11 per unit. Variable Manufacturing Overhead costs $6 per unit. Fixed Manufacturing Overhead costs $34,000 per month. Variable Selling and Administrative Costs $5 per unit. Fixed Selling and Administrative costs $17,000.

a) Complete the month’s Contribution Margin Income Statement Budget for Z Inc., assuming that they plan to sell 10,000 units of product.

	TOTAL
SALES
VARIABLE COST
CONTRIBUTION MARGIN
FIXED COST
OPERATING INCOME

b) Complete the month’s Financial Statement Income Statement Budget for Z Inc., assuming that they plan to sell 11,000 units of product.

	TOTAL
SALES
COST OF GOODS SOLD
GROSS MARGIN
SELLING AND ADMINISTRATING COSTS
OPERATING INCOME

Answer rating: 100% (QA)

a Contribution Margin Income Statement Budget for Z Inc selling 10000 units TOTAL SALES 60 10000 600... View the full answer