Restate the following income statement in contribution margin format.
$\begin{array}{lrr}
\text { Sales } \$ 20 \text { per unit } & & \$ 14,000 \
\text { Less cost of goods sold } \$ 14 \text { per unit } & & \underline{9,800} \
\text { Gross margin } & & 4,200 \
\text { Less Operating costs: } & & \
\quad \text { Salaries } & 2,100 & \
\quad \text { Advertising } & 200 & \
\quad \text { Rent } & 1,000 & \
\quad \text { Delivery charges } \$ 0.20 \text { per unit } & \underline{140} & \underline{3,440} \
\text { Operating Income } & & \underline{\underline{\$ 760}}
\end{array}$

Question

Restate the following income statement in contribution margin format.
 $\begin{array}{lrr}
\text { Sales } \$ 20 \text { per unit } & & \$ 14,000 \
\text { Less cost of goods sold } \$ 14 \text { per unit } & & \underline{9,800} \
\text { Gross margin } & & 4,200 \
\text { Less Operating costs: } & & \
\quad \text { Salaries } & 2,100 & \
\quad \text { Advertising } & 200 & \
\quad \text { Rent } & 1,000 & \
\quad \text { Delivery charges } \$ 0.20 \text { per unit } & \underline{140} & \underline{3,440} \
\text { Operating Income } & & \underline{\underline{\$ 760}}
\end{array}$

Quizplus · Accepted Answer

The Answer of Restate the following income statement in contribution margin format.
 $\begin{array}{lrr}
\text { Sales } \$ 20 \text { per unit } & & \$ 14,000 \
\text { Less cost of goods sold } \$ 14 \text { per unit } & & \underline{9,800} \
\text { Gross margin } & & 4,200 \
\text { Less Operating costs: } & & \
\quad \text { Salaries } & 2,100 & \
\quad \text { Advertising } & 200 & \
\quad \text { Rent } & 1,000 & \
\quad \text { Delivery charges } \$ 0.20 \text { per unit } & \underline{140} & \underline{3,440} \
\text { Operating Income } & & \underline{\underline{\$ 760}}
\end{array}$

Restate the Following Income Statement in Contribution Margin Format