N November, Townhouse Corporation sold 2,100 units of its only product. Its total sales were $195,300, its total variable costs were $84,000, and its total fixed costs were $98,700. Required: a. Construct the company's contribution format income statement for November in good form. b. Redo the company's contribution format income statement assuming that the company sells 2,300 units.

a.

                             Townhouse Corporation

                   Contribution Margin Income statement

                                  for November,

                                                                    $

Sales                                                         195,300

Variable cost                                            (84,000)

Contribution                                              111,300      

Fixed Cost                                               (98,700)  

Net Income                                                 12,600

b.

                             Townhouse Corporation

                   Contribution Margin Income statement

                                  for November,

                                                                    $

*Sales                                                         213,900

*Variable cost                                            (92,000)

Contribution                                              121,900

Fixed Cost                                                 (98,700)

Net Income                                                23,200

Explanation:

* Working

b.

Sales and variable cost will vary with the sales volume as below:

Sales price = 195,300 / 2,100 = $93 per unit

Sales = $93 x 2,300 Unit = $213,900

Variable cost per unit = $84,000 / 2,100 = $40 per unit

Total Variable cost = $40 x 2,300 units = $92,000

Fixed cost will not change with the change in sale volume.

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'