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Contribution Margin. I am a math disorder and seeing the steps will help me understand it.

#1 Selling Price $500/Unit

Total Expenses for Month: $500,000

Units Sold this month: 1000

Prepare a traditional income statement to calculate operating income or loss

#2 Assume same data in #1. Total Expenses, $200,00 are fixed and the rest are Variable

Prepare a CM income statement fo rthe volumn of sales (1000 units). Include selling Price, VC and CM per unit amounts and totals.

#3 Using the CM Income STatement form #2. If compmany sells one additional unit (at the same selling price), how much will CM $ increase (total)? How much will operating income increase (total)?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92766983

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