Paper Topic:

comparitive income statements

Mannatech Incorporation

Contribution Margin Income Statement for the year ended 31st December 2008 '000

Sales Revenue 332 ,703

Variable Costs

Cost of Revenue (note 1 ) 198 ,159

Selling , general and administrative expenses (note 2 ) 37 ,080

Other operational Expenditure (note 3 ) 8 ,280 Contribution 89 ,184

Fixed Costs

Selling , general and administrative expenses (note 2 ) 99 ,653

Other operational Expenditure (note 3 ) 4 ,030

Taxation Expense (note 4 ) 5 ,570 Net (Loss (20 ,069

Sales volume is taken to be 400 million in 2008 . While in 2007 sales

br volume is presumed to be 500 million

Note 1 - Cost of Revenue

Cost of Revenue is a direct cost and by its nature directs costs are completely variable costs

Note 2 - Selling , General and Administrative Expenditure

The selling , general and administrative expenses of 136 ,733 are a combination of variable and fixed costs necessitating the utilization of the high low method

Year Sales Volume Expense Value

2007 500 ,000 146 ,001

2008 400 ,000 136 ,733

Movement 100 ,000 9 ,267 Variable Costs in 2008 (0 .0927 x 400 ,000 37 ,080

Fixed Costs in 2008 99 ,653

Note 3 - Other operational expenditure

Likewise other operational expenditure encompasses a semi-variable cost requiring the utilization of the high low method for classification purposes

Variable Costs in 2008 (0 .0207 x 400 ,000 8 ,280

Fixed Costs in 2008 4 ,030

Note...

2 pages

48.5 KB

Free sing-up