Behavior replaces function as the organizing principle of AC239's Unit 3 contribution income statement, which reconciles to the traditional version and adds per-unit and ratio columns. Searches like "ac 239 unit 3 assignment example", "ac239 unit 3 sample" and "ac239 unit 3 example" land here.
What a finished AC239 Unit 3 contribution income statement looks like
Two statements side by side for the same year and the same sales. The left one is the traditional format: sales, cost of goods sold, gross margin, selling and administrative expenses, operating income. The right one is the rebuild: sales, then every variable cost wherever it came from, variable production costs and variable selling costs such as commissions and shipping together, then contribution margin, then fixed manufacturing overhead and fixed selling and administrative costs, then operating income. The two operating income figures match, and a line beneath says so. Two narrow columns sit beside the contribution version, one giving each figure per unit sold and the other as a percentage of sales, which yields the contribution margin ratio. A short schedule underneath shows how each functional cost was divided between variable and fixed.
How a AC239 Unit 3 example is structured
The split schedule is what the rebuild depends on, so it is worked first, even though it prints last. Every functional line from the traditional statement is traced into it: cost of goods sold divided into variable production cost and fixed overhead, selling expense into commissions and shipping versus salaries and rent, administrative expense almost entirely fixed. The contribution statement is then assembled from the schedule, variable lines first. Operating income is compared with the traditional figure, and the sample notes that they agree because production equaled sales in the year; with inventory building up or running down, fixed overhead would sit partly in inventory under the traditional method and the two figures would part. The per-unit column comes last, its fixed rows left blank, with a sentence explaining that a per-unit fixed figure would change the moment volume did.
The variable and fixed split
Each functional line from the traditional statement traced into a variable part and a fixed part, with administrative costs almost wholly fixed and commissions wholly variable.
Traditional format, left
Sales less cost of goods sold for gross margin, less selling and administrative costs for operating income. Reproduced exactly as given so the comparison is fair.
Contribution format, right
Sales less all variable costs for contribution margin, less all fixed costs for operating income. Variable selling costs move above the line; fixed overhead moves below it.
Where the two agree
Operating income matches because production equaled sales. A sentence notes that inventory changes would separate the figures, and why.
Per unit and percent
Sales, variable cost and contribution per unit, and as percentages of sales. Fixed rows are left blank in the per-unit column on purpose.
Where marks go in AC239 Unit 3
The loss graders see most is variable selling cost, commissions or shipping, left below the contribution line among the fixed items, which understates variable cost and overstates contribution margin. Every later break-even calculation built on that margin inherits the error. Fixed manufacturing overhead kept inside cost of goods sold, above the contribution line, is the same mistake from the other side. An operating income that fails to match the traditional statement, with no explanation, costs points even where inventory changes justify the gap, since the unit expects the reason to be stated. Per-unit fixed costs shown as if they were constant lose marks in most sections. Gross margin appearing anywhere in the contribution statement suggests the two formats were blended, and that is marked down as well.
Get a AC239 Unit 3 example written to your instructions
Begin the request with the income statement Unit 3 provides, any cost behavior details that came with it, the instructions and the rubric. The split schedule, both statements and the per-unit columns return inside 24-48h, operating income reconciled and any gap explained. The first custom sample carries no charge and follows the column layout your instructions specify.
AC239 Unit 3 questions, answered
Why does the contribution format matter if operating income is the same?
Because the middle of the statement answers different questions. Gross margin says how much sales exceed production cost; contribution margin says how much each additional sale adds toward fixed costs and profit. Only the second lets a manager predict what happens to operating income when volume changes, which is why the break-even work in AC239 is built on it.
Where does a sales commission go?
Above the contribution line, with the other variable costs, even though it is a selling expense rather than a production cost. The contribution format sorts by behavior, not by department, so a commission paid on every sale belongs with materials and direct labor. A salaried sales manager's pay, by contrast, drops below the line as a fixed cost.
What if the problem does not say which costs are variable?
Then the classification is part of the answer. AC239 problems sometimes give total costs at two volumes, which allows each cost's behavior to be inferred, or describe the costs in words. The sample states each assumption in the split schedule, one line per cost, so a grader can disagree with a specific judgment instead of marking the whole statement.