Doran Products had costs of $950,000 when sales equaled 55,000 units. When sales increased to 85,000 units, total costs increased to $1,400,000. The selling price is $21 per unit.
Required:
(a.) Determine the fixed and variable portions of total costs.
(b.) Prepare a contribution margin income statement for a month with sales of 70,000 units.

Question

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The Answer of Doran Products had costs of $950,000 when sales equaled 55,000 units. When sales increased to 85,000 units, total costs increased to $1,400,000. The selling price is $21 per unit.
Required:
(a.) Determine the fixed and variable portions of total costs.
(b.) Prepare a contribution margin income statement for a month with sales of 70,000 units.

Doran Products Had Costs of $950,000 When Sales Equaled 55,000