Variable Costing Format

Prepare an income statement in the variable costing format, indicating the projected annual income from operations if Proposal 3 is accepted. The expenditure of $43,200 for the rental of additional warehouse space can be added to the fixed operating expenses. Enter all amounts as positive numbers.

Extreme Camping Company Contribution Margin"Proposal 3

Size S Size L Total

Sales

Variable cost of goods sold

Manufacturing margin

Variable operating expenses

Contribution margin

Fixed costs:

Manufacturing costs

Operating expenses

Total fixed costs

Income from operations