Question

A manufacturer's contribution margin income statement for the year follows. Prepare contribution margin income statements for each of the three separate cases below.

Answer 1

To create a table of a company's costs, calculate the values for output, total cost, marginal cost, average cost, variable cost, and average variable cost. Then, fill in the table with the calculated values for each level of output.

Step-by-step explanation:

Step 1: To create a table that shows the company's output, total cost, marginal cost, average cost, variable cost, and average variable cost, we first need to calculate these values. Output refers to the number of units produced by the company. Total cost is the sum of all costs incurred by the company, including fixed and variable costs. Marginal cost is the additional cost of producing one additional unit. Average cost is the total cost divided by the output. Variable cost refers to costs that vary with the level of output. Average variable cost is the variable cost divided by the output.

Step 2: Once we have calculated these values, we can create a table with columns for output, total cost, marginal cost, average cost, variable cost, and average variable cost. Each row of the table represents a different level of output, starting from zero and increasing by one unit.

Step 3: Fill in the table with the calculated values for each level of output. This will provide a comprehensive view of the company's cost structure at different production levels and help analyze the cost behavior