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Complete Each of the Following Contribution Format Income Statements by Supplying

Question 141

Essay

Complete each of the following contribution format income statements by supplying the missing numbers.
 Blue Co. Red, Inc. Sales revenue?$60,000Variable costs9,000?Contribution margin?40,000Fixed costs 12,000?Operating income??Income taxes1,6004,000Net income$4,800$16,000\begin{array}{lccc}& \textbf { Blue Co. } & \textbf {Red, Inc. } \\\\\text {Sales revenue} & ? & \$60,000 \\\text {Variable costs} & \underline{9,000} & \underline{\quad\quad?\quad\quad} \\\text {Contribution margin} & ? & 40,000 \\\text {Fixed costs }& \underline{12,000} & \underline{\quad\quad?\quad\quad} \\\text {Operating income} & ? & ? \\\text {Income taxes} & \underline{1,600} & \underline{4,000} \\\text {Net income} & \underline{\underline{\$4,800}} & \underline{\underline{\$16,000}} \\\end{array}

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