EXERCISE 5-6 (20 MINUTES)

2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH05 COST BEHAIVIOR ANALYSSIS AND USE
2. The company’s income statement in the contribution format would be: Sales (45,000 units × $16 per unit) ... $720,000 Less variable expenses (45,000 units × $6 per unit) .. 270,000 Contribution margin ... 450,000 Less fixed expense... 300,000 Net operating income ... $150,000

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Solutions Manual, Chapter 5

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