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Comparative Monthly Income Statenents March April 5,200 $696,80e 368,200 328,600 May 5,950 $797, 300 403, 700 393,600 June 6,4ee $857,600 433,000 424, 600 Sales in units Sales revenue 5, 700 $763,800 395, 200 Less: Cost of goods sold Gross Less: Operating expenses margin 368, 600 Shipping expense Advertising expense Salaries & commissions 68, 700 77,e00 176, e00 63, 700 77,00d 158, 700 9,700 46, eee 355,100 71,95e 77, ee0 176,95e 9,700 46, e0e 381,600 $ 12,000 74,5ee 77,000 187,5e0 9,78e 46, 800 394, 700 $ 29,900 Insurance expense Depreciation expense Total operating expenses 9,700 46, eee 377,40e Net income $ (8,800) $(26, 500) Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs. COGS 87,400 + 54 Shipping 16.00 + %3D Salaries and commissions 33,000+ 24 X

Comparative Monthly Income Statenents March April 5,200 $696,80e 368,200 328,600 May 5,950 $797, 300 403, 700 393,600 June 6,4ee $857,600 433,000 424, 600 Sales in units Sales revenue 5, 700 $763,800 395, 200 Less: Cost of goods sold Gross Less: Operating expenses margin 368, 600 Shipping expense Advertising expense Salaries & commissions 68, 700 77,e00 176, e00 63, 700 77,00d 158, 700 9,700 46, eee 355,100 71,95e 77, ee0 176,95e 9,700 46, e0e 381,600 $ 12,000 74,5ee 77,000 187,5e0 9,78e 46, 800 394, 700 $ 29,900 Insurance expense Depreciation expense Total operating expenses 9,700 46, eee 377,40e Net income $ (8,800) $(26, 500) Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs. COGS 87,400 + 54 Shipping 16.00 + %3D Salaries and commissions 33,000+ 24 X

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Using the cost equations, prepare a contribution margin income statement (in good form) for September when 6,200 units are expected to be sold. CENTRAL VALLEY COMPANY Contribution Income Statement For the month ended September 30 Variable costs Less foced costs:
Transcribed Image Text:2. Using the cost equations, prepare a contribution margin income statement (in good form) for September when 6,200 units are expected to be sold. CENTRAL VALLEY COMPANY Contribution Income Statement For the month ended September 30 Variable costs Less foced costs:
Comparative Monthly Income Statements March 5, 700 $763,800 395, 200 April 5, 200 $696, 800 368,200 328,600 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries & commissions Insurance expense Depreciation expense Total operating expenses May 5,950 $797, 300 403, 700 393,600 June 6,4ee $857,600 433,000 368, 600 424, 600 68, 700 77, e00 176,800 9,700 46, e0e 377,400 71,95e 77, eee 176, 95e 9,700 46, e00 381,600 63, 700 77,e0ds 158, 700 74,580 77, 000 187, see 9,7ee 9,700 46,eee 46, eee 394, 7ee $ 29,900 355, 100 Net income $(8,800) $(26, see) $ 12,000 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs. COGS Shipping Y. 87,400 + 54 X %3! 18.900 + %3D Salaries and commissions Y 33,000 + 24 X
Transcribed Image Text:Comparative Monthly Income Statements March 5, 700 $763,800 395, 200 April 5, 200 $696, 800 368,200 328,600 Sales in units Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses Shipping expense Advertising expense Salaries & commissions Insurance expense Depreciation expense Total operating expenses May 5,950 $797, 300 403, 700 393,600 June 6,4ee $857,600 433,000 368, 600 424, 600 68, 700 77, e00 176,800 9,700 46, e0e 377,400 71,95e 77, eee 176, 95e 9,700 46, e00 381,600 63, 700 77,e0ds 158, 700 74,580 77, 000 187, see 9,7ee 9,700 46,eee 46, eee 394, 7ee $ 29,900 355, 100 Net income $(8,800) $(26, see) $ 12,000 Required: 1. Management is concerned about the losses experienced during the spring and would like to know more about the cost behaviour. Develop a cost equation for each of the costs. COGS Shipping Y. 87,400 + 54 X %3! 18.900 + %3D Salaries and commissions Y 33,000 + 24 X
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