Module+300+Module+1000000+Using+Tables+An+Example

=Module 300 Module 1000000 Using Tables an Example jwf=

I hope the following Table will enable us to have an income statement with proper spacing! No it didn't because it did not honor the spaces. How about tabs? Nope.

This is an example of using a table to format a contribution margin income statement (CMIS). A manager should think in terms of contribution margin because it corresponds to cost behavior and shows cash flow.

Dr. Ferry & Company makes flash based hard drives and has estimated the following costs and sales for October. He plans to sell 100 hard drives for $1,000 each. He has budgeted a total of $10,000 of Sales and Administrative expenses of which 10% will be variable. He has estimated that total manufacturing expenses will be $20,000 of which 20% will be variable. (Note: Sales and Administrative expenses may also be called Marketing and Admin) (Note: Another term for budgeted income statements is pro forma income statements.)
 * Required:** Prepare a budgeted contribution margin income statement, and show all your work starting with the formula in words and symbols, or a statement


 * Solution:**

Budgeted (Pro Forma) Contribution Margin Income Statement for October (a) Total sales=unit sales price*total units sold =$1,000*100=$100,000 (b) Variable manufacturing costs = Total manufacturing costs*variable manufacturing cost % =$20,000*20%=$4,000 (c) Variable Sales and Admin=Total Sales and Admin*variable sales and admin cost % =$10,000*10%=$1,000 (d) Fixed manufacturing costs=Total manufacturing costs*fixed manufacturing cost % =$20,000*(100%-20%)=$16,000 (e) Fixed Sales and Admin costs=Total Sales and Admin*fixed sales and admin cost % =$10,000(100%-10%)=$9,000 Note: You do not need to show how to calculate numbers that are obvious from the schedule such as the contribution margin. I double underlined the Operating income (OI) by putting an apostrophe (') then equal signs in the cell below the operating income. I use dollar signs ($) for the beginning of every column and for the final answer. You could also put in a dollar sign for each subtotal. But do not put a dollar sign in front of every number. If anyone can find a better way to show an income statement in wikispaces, please let me know!!!!
 * Sales ||  ||   || $100,000 || (a) ||
 * Less Variable Costs: ||  ||   ||   ||   ||
 * Manufacturing || $4,000 || (b) ||  ||   ||
 * Sales and Admin || __1,000__ || (c) || __5,000__ ||  ||
 * Contribution Margin ||  ||   || 95,000 ||   ||
 * Less Fixed Costs: ||  ||   ||   ||   ||
 * Manufacturing || $16,000 || (d) ||  ||   ||
 * Sales and Admin || __9,000__ || (e) || __25,000__ ||  ||
 * Operating Income ||  ||   || $70,000 ||   ||
 * Sales and Admin || __9,000__ || (e) || __25,000__ ||  ||
 * Operating Income ||  ||   || $70,000 ||   ||