In July, Meers Corporation sold 3,700 units of its only product.Its total sales were $107,300, its total variable expenses were $66,600, and its total fixed expenses were $34,800.
Required:
a.Construct the company's contribution format income statement for July.
b.Redo the company's contribution format income statement assuming that the company sells 3,400 units.

Contribution Format

A type of income statement format that separates fixed costs from variable costs to highlight the contribution margin.

Income Statement

A financial document that provides a summary of a company’s revenues, expenses, and profits/losses over a specific period, showing how the revenue is transformed into net income.

Variable Expenses

Expenses that vary directly with the amount of production or activity level.