MOD 4 SLP Variable Costing

Module 4: Variable Costing

Lewis Company Contribution Margin Income Statement

Lewis Company

Variable Income Statement

For the period ending Dec. 31, 2012

 

 

Sales

$ 2,700, 000

Less: Variable Expenses

 

Direct material

$ 1,080, 000

Direct labor

$ 540,000

Variable overhead

$ 360, 000

Variable selling and administrative

$ 90, 000

Total Variable Expenses

$ 2, 070, 000

 

 

Contribution Margin

$ 630, 000

Less: Fixed Expenses

 

Fixed man overhead

$ 250, 000

Fixed selling and administrative

$ 100, 000

Total Fixed Expenses

$ 350, 000

Net Operating Profit

$ 280, 000

Net operating income through Contribution Margin approach is $ 280, 000 since in this approach (Warren, Reeve, Duchac, 2012).

Assumption that selling price has been ...