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Coronado, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31: Sales revenue         $ 751,000   Cost of goods sold           585,780   Gross margin           165,220   Operating expenses                 Selling expense   $ 24,430           Administrative expense     50,650     75,080   Net operating income         $ 90,140

Coronado, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31: Sales revenue         $ 751,000   Cost of goods sold           585,780   Gross margin           165,220   Operating expenses                 Selling expense   $ 24,430           Administrative expense     50,650     75,080   Net operating income         $ 90,140

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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J Coronado, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31:

Sales revenue
         $ 751,000  
Cost of goods sold
        

 

 585,780  
Gross margin
           165,220  
Operating expenses
              
  Selling expense
   $ 24,430        
  Administrative expense
  

 

 50,650  

 

 75,080  
Net operating income
         $ 90,140  

Coronado sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.

(a)

 
 
Prepare a contribution format income statement for January. (Round per unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

         
Per Unit
select an income statement item                                                                       
     $enter a dollar amount    $enter a dollar amount 
select an opening name for section one                                                                       :
          
select an income statement item                                                                       
   enter a dollar amount     enter a dollar amount
select an income statement item                                                                       
   enter a dollar amount     enter a dollar amount
select an income statement item                                                                       
   enter a dollar amount     $enter a dollar amount 
select a closing name for section one                                                                       
     enter a total amount for section one   enter a total amount per unit for section one
select a summarizing line for the first part                                                                       
     enter a total amount for the first part   $enter a total amount per unit for the first part 
select an opening name for section two                                                                       :
          
select an income statement item                                                                       
   enter a dollar amount      
select an income statement item                                                                       
   enter a dollar amount      
select a closing name for section two                                                                       
     enter a total amount for section two    
select a closing name for this statement                                                                       
     $enter a total amount for this statement   
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