Appliance Haven is a retailer that sells refrigerators. The income statement for the month of September showed a gross margin of $75,000 and an operating income of $25,000. Selling and administrative expenses were 40% fixed. 250 refrigerators were sold at an average price of $900 per unit. All refrigerators are purchased from Whirlpool and Samsung. a) Prepare an income statement for the month using the contribution approach. b) What is the contribution margin per unit?

Appliance Haven is a retailer that sells refrigerators. The income statement for the month of September showed a gross margin of $75,000 and an operating income of $25,000. Selling and administrative expenses were 40% fixed. 250 refrigerators were sold at an average price of $900 per unit. All refrigerators are purchased from Whirlpool and Samsung. a) Prepare an income statement for the month using the contribution approach. b) What is the contribution margin per unit?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6EA: Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement...

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