Problem:
1. For the month of August 19A, Updike Co. presented the following income statement:
UPDIKE CO.
Income Statement
For the Month Ended August 31, 19A
|
Sales (1,000 units @ $50)
|
$50,000
|
|
Less: Cost of Goods Sold (60% variable)
|
20,000
|
|
Gross Margin
|
$30,000
|
|
Less: Operating Expenses
|
|
|
Selling and Administrative (30% variable)
|
25,000
|
|
Net Income
|
$ 5,000
|
Recast the income statement in contribution format.