https://topclasswriter.com/wp-content/uploads/2021/07/log-300x60.png 0 0 Sophia https://topclasswriter.com/wp-content/uploads/2021/07/log-300x60.png Sophia2021-08-17 00:00:462021-08-17 00:00:46prepare a memo to your cfo which does the following
- Summarize what a contribution format income statement depicts, as compared to the traditional format.
- Using the following company data, show how the two income statement formats would look side by side.
- Explain why the contribution approach is more useful to project profits. As an example, show your calculations when using a projected sales increase of 20%.
- Using the following data, show how expected profits would be different if there was a sales increase of 10% and she used variable COGS of 50% vs. 60%. As an offset, this implies an increase in fixed COGS of $1,000,000.