Lepage Corporation Has Provided Its Contribution Format Income Statement for January

question 18

Multiple Choice

Lepage Corporation has provided its contribution format income statement for January. The company produces and sells a single product. If the company sells 4,700 units, its total contribution margin should be closest to:

• A)$83,600
• B)$18,373
• C)$89,300
• D)$98,000

---

Definitions:

Capital Cost Allowance

A tax deduction available in some jurisdictions for tangible and intangible assets, allowing businesses to write off the cost of assets over their useful life.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion, resulting in a constant annual depreciation expense.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, applicable to income, capital gain, or other taxable bases.

IFRS 8

An International Financial Reporting Standard that requires companies to report financial information by business segment to provide a clearer understanding of a company’s performance.