Restate the following income statement in contribution format.
$$\begin{array}{lrr}
\text { Sales } \$ 20 \text { per unit } & & \$ 20,000 \
\text { Less cost of goods sold } \$ 6 \text { per unit } & & \underline{6,000} \
\text { Gross margin } & & 14,000 \
\text { Less operating expenses } & & \
\quad\text { Shipping charges } \$ 2 \text { per unit } & 2,000 & \
\quad\text { Salaries } & 3,000 & \
\quad\text { Utilities } & \underline{4,000} & \underline{9,000} \
\text { Operating Income } & & \underline{\underline{\$ 5,000}}
\end{array}$$

Question

Restate the following income statement in contribution format.
 $$\begin{array}{lrr}
\text { Sales } \$ 20 \text { per unit } & & \$ 20,000 \
\text { Less cost of goods sold } \$ 6 \text { per unit } & & \underline{6,000} \
\text { Gross margin } & & 14,000 \
\text { Less operating expenses } & & \
\quad\text { Shipping charges } \$ 2 \text { per unit } & 2,000 & \
\quad\text { Salaries } & 3,000 & \
\quad\text { Utilities } & \underline{4,000} & \underline{9,000} \
\text { Operating Income } & & \underline{\underline{\$ 5,000}}
\end{array}$$

Quizplus · Accepted Answer

The Answer of Restate the following income statement in contribution format.
 $$\begin{array}{lrr}
\text { Sales } \$ 20 \text { per unit } & & \$ 20,000 \
\text { Less cost of goods sold } \$ 6 \text { per unit } & & \underline{6,000} \
\text { Gross margin } & & 14,000 \
\text { Less operating expenses } & & \
\quad\text { Shipping charges } \$ 2 \text { per unit } & 2,000 & \
\quad\text { Salaries } & 3,000 & \
\quad\text { Utilities } & \underline{4,000} & \underline{9,000} \
\text { Operating Income } & & \underline{\underline{\$ 5,000}}
\end{array}$$

Restate the Following Income Statement in Contribution Format