Contribution Format Income Statement

Question

How do I find the fixed selling and administrative expenses when filling in a contribution income statement? I know the actual selling and administrative expenses which are both $24,000.

1. Sales: $216,000

# of Units Sold: 12,000

Selling price per unit: $18

Variable selling expense per unit: $2

Variable administrative expense per unit: $2

Total fixed selling expense: $19,000

Total fixed administrative expense: $15000

Beginning merch inventory: $9,000

Ending merch inventory: $25,000

Merch purchases: $89,000

Answer 1

	Value	Units	Cost / Price per unit
Sales		12,000	18	216,000
Less: Cost of goods sold
Opening Merchandise	9000
Add: Purchase	89000
Less: closing Merchandise	-25000
Cost of goods sold				(73,000)
Less:
Variable selling expenses		12,000	2	(24,000)
Variable administration expenses		12,000	2	(24,000)
Total Variable expenses				(121,000)
Contribution margin				95,000
Less : Fixed Expenses
Selling expenses				(19,000)
Administration expenses				(15,000)
Net Income				61,000