An income statement for Sam's Bookstore for the first quarter of the year is presented below: On average, a book sells for $70. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales Cost of goods sold. Gross margin Selling and administrative expenses Selling Administration Net operating income $910,000 530,000 380,000 $113,000 130,000 243,000 $137,000
An income statement for Sam's Bookstore for the first quarter of the year is presented below: On average, a book sells for $70. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales Cost of goods sold. Gross margin Selling and administrative expenses Selling Administration Net operating income $910,000 530,000 380,000 $113,000 130,000 243,000 $137,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:An income statement for Sam's
Bookstore for the first quarter of the
year is presented below:
On average, a book sells for $70.
Variable selling expenses are $5 per
book with the remaining selling
expenses being fixed. The variable
administrative expenses are 3% of
sales with the remainder being fixed.
The contribution margin for Sam's
Bookstore for the first quarter is:
Sam's Bookstore
Income Statement
For Quarter Ended March 31
Sales
Cost of goods sold.
Gross margin
Selling and administrative expenses
Selling
Administration
Net operating income
$910,000
530,000
380,000
$113,000
130,000 243,000
$137,000
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