Jindal Manufacturing Company provides you with the following income statement.
Jindal Manufacturing Company
Income Statement for the Most Recent Year
Revenue $2,435,000
Cost of Goods Sold 1,246,760=
Gross Margin $1,188,240
Administration Costs 425,000
Selling Costs 558,950=
Profit $204,290
You learn that Jindal incurred manufacturing overhead costs of $248,750 for the year and all of this cost is fixed. Moreover, the only variable selling costs are sales commissions at 5% of revenue. Finally, all administration costs are fixed.
Prepare an income statement in the contribution margin format. For simplicity, assume that the Jindal began and ended the year with zero inventories of any kind.