LIBERTY COMPANY

LIBERTY COMPANY (contribution approach) (absorbtion approach)

PARTICULARS Amount Amount PARTICULARS Amount
in 000's $ in 000's $ in 000's $
Sales A $2,500.00 $2,300.00 Sales A 2500
VARIABLE COST Cost
Direct material $410.00 $377.20 cost
Direct labour $330.00 $303.60
Supplies $25.00 $23.00
Utilities $42.00 $38.64
Indirect labour $93.00 $85.56
Selling expenses $76.00 $69.92
General admn exp $21.00 $19.32
B $997.00 $917.24
CONTRIBUTION A-B $1,503.00 $1,382.76
FIXED COST
Utilities $17.00
Indirect labour $51.00
Supervisory Salary $59.00
Depreciation $215.00
Selling expenses $220.00
General admn exp $128.00
C $690.00
PROFIT (A-B)-C $813.00 PROFIT 0