Current Attempt in Progress Sheffield/Davis Designs sells customized mobile phone covers. The company's controller prepared the following income statement for the upcoming monthly management meeting. Sales revenue $90,000 Cost of goods sold $24,600 Variable selling expenses 3,350 Variable general and administrative expenses 17,950 Total variable expenses 45,900 44,100 Contribution margin 6,000 Fixed selling expenses 18,000 Fixed neral and administrative expenses 24,000 Total fixed expenses $20,100 Operating income
Current Attempt in Progress Sheffield/Davis Designs sells customized mobile phone covers. The company's controller prepared the following income statement for the upcoming monthly management meeting. Sales revenue $90,000 Cost of goods sold $24,600 Variable selling expenses 3,350 Variable general and administrative expenses 17,950 Total variable expenses 45,900 44,100 Contribution margin 6,000 Fixed selling expenses 18,000 Fixed neral and administrative expenses 24,000 Total fixed expenses $20,100 Operating income
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
Section: Chapter Questions
Problem 5.4DC
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Current Attempt in Progress
Sheffield/Davis Designs sells customized mobile phone covers. The company's controller prepared the following income
statement for the upcoming monthly management meeting.
Sales revenue
$90,000
Cost of goods sold
$24,600
Variable selling expenses
3,350
Variable general and administrative expenses
17,950
Total variable expenses
45,900
44,100
Contribution margin
6,000
Fixed selling expenses
18,000
Fixed general and administrative expenses
24,000
Total fixed expenses
$20,100
Operating income
(a)
!!
Transcribed Image Text:Operating income
$20,100
(a)
Assume that Sheffield/Davis sells its phone covers for $15 each. How many covers did the company sell? (Round answer to 0
decimal places, e.g. 5,275.)
Number of covers sold
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(b)
Expert Solution
Step 1
Formula:
Number of covers sold = Total sales revenue / Per unit cover price
Division of Total sales revenue with per unit cover price derives the Number of covers sold.
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