Contribution Income Analysis

Use this spreadsheet to prepare a contribution margin income statement. The contribution margin is found by
subtracting all variable costs from revenue (sales). Shaded cells have formulas…careful! After you enter your
numbers check the Break-Even Chart below.

Price Per Unit $7.26

Number of Units Sold 10000
Total Sales $72,600 100%
Less: Variable Production Costs $31,040 43%
Less: Variable Selling Costs $18,480 25%
Total Variable Costs $49,520 68% $4.95 Per Unit
Contribution Margin $23,080 32%
Less: Fixed Production Costs $13,050 18%
Less: Fixed Selling and Administrative Costs $4,820 7%
Total Fixed Costs $17,870 25% $1.79 Per Unit
Income Before Taxes $5,210 7% $0.52 Per Unit

Break-Even Analysis Chart

$100,000

$80,000

$60,000

$40,000

$20,000

20,000

40,000
0 40 80 12 16 20 24 28 32 36 40 44 48 52 56 60 64 68 72 76 80 84 88 92 96 10 10 10 11
0 0 00 00 00 00 00 00TFC00 00 TVC
00 00 00
TC 00 Sales
00 00 00Profit
00 00 00 00 00 00 00 00 40 80 20
0 0 0 0
Break-Even Point (units) = 7743 Break-Even Point ($'s) = $56,212

Total Fixed Costs TFC = $17,870 Formulas:

Variable Cost per Unit VCU = $4.95 BEP (units) = TFC/(SPU-VCU)
Sales Price per Unit SPU = $7.26 BEP ($'s) = BEP (units) * SPU