Last month,Pioneer Company sold its product for $50 per unit.Fixed production costs were $20,000,and variable production costs amounted to $8.00 per unit.Fixed selling and administrative costs totaled $13,000,and variable selling and administrative costs amount to $3.00 per unit.Pioneer produced and sold 4,000 units last month.
(1)Prepare a traditional income statement for Pioneer Industries.
(2)Prepare a contribution margin income statement for Pioneer Industries.
(3)Why do companies use the contribution margin income statement format?

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The Answer of Last month,Pioneer Company sold its product for $50 per unit.Fixed production costs were $20,000,and variable production costs amounted to $8.00 per unit.Fixed selling and administrative costs totaled $13,000,and variable selling and administrative costs amount to $3.00 per unit.Pioneer produced and sold 4,000 units last month.
(1)Prepare a traditional income statement for Pioneer Industries.
(2)Prepare a contribution margin income statement for Pioneer Industries.
(3)Why do companies use the contribution margin income statement format?

Last Month,Pioneer Company Sold Its Product for $50 Per Unit