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DeLuxe Limo Service has the following information for March: Sales revenue Variable costs of operations, excluding labor costs Employee wages and salariesb Manager salaries Fixed cost of automobilesd Building costs (rent, utilities, etc.)e $ 250, 000 75,000 100, 000 20,000 25,000 12, 500 a 5 percent of this cost was wasted due to poor directions given to limo drivers. b 5 percent of this cost was for time spent by limo drivers because of poor directions. C 10 percent of this cost was time taken to address customer complaints. d The limos have 40 percent unused capacity. e The building has 10 percent unused capacity. Required: a. Using the traditional income statement format, prepare a value income statement. (Loss amounts should be indicated with a minus sign.) Answer is complete but not entirely correct. DELUXE LIMO SERVICE Value Income Statement For the Month Ending March 31 Value- added Nonvalue- added Total Activities Activities

DeLuxe Limo Service has the following information for March: Sales revenue Variable costs of operations, excluding labor costs Employee wages and salariesb Manager salaries Fixed cost of automobilesd Building costs (rent, utilities, etc.)e $ 250, 000 75,000 100, 000 20,000 25,000 12, 500 a 5 percent of this cost was wasted due to poor directions given to limo drivers. b 5 percent of this cost was for time spent by limo drivers because of poor directions. C 10 percent of this cost was time taken to address customer complaints. d The limos have 40 percent unused capacity. e The building has 10 percent unused capacity. Required: a. Using the traditional income statement format, prepare a value income statement. (Loss amounts should be indicated with a minus sign.) Answer is complete but not entirely correct. DELUXE LIMO SERVICE Value Income Statement For the Month Ending March 31 Value- added Nonvalue- added Total Activities Activities

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Deluxe Limo Service has the following information for March: Sales revenue Variable costs of operations, excluding labor costs Employee wages and salariesb Manager salaries Fixed cost of automobilesd Building costs (rent, utilities, etc.)e $ 250, 000 75,000 100, 000 20,000 25,000 12,500 a 5 percent of this cost was wasted due to poor directions given to limo drivers. b 5 percent of this cost was for time spent by limo drivers because of poor directions. C 10 percent of this cost was time taken to address customer complaints. d The limos have 40 percent unused capacity. e The building has 10 percent unused capacity. Required: a. Using the traditional income statement format, prepare a value income statement. (Loss amounts should be indicated with a minus sign.) Answer is complete but not entirely correct. DELUXE LIMO SERVICE Value Income Statement For the Month Ending March 31 Nonvalue- Value- added added Total Activities Activities
Transcribed Image Text:Deluxe Limo Service has the following information for March: Sales revenue Variable costs of operations, excluding labor costs Employee wages and salariesb Manager salaries Fixed cost of automobilesd Building costs (rent, utilities, etc.)e $ 250, 000 75,000 100, 000 20,000 25,000 12,500 a 5 percent of this cost was wasted due to poor directions given to limo drivers. b 5 percent of this cost was for time spent by limo drivers because of poor directions. C 10 percent of this cost was time taken to address customer complaints. d The limos have 40 percent unused capacity. e The building has 10 percent unused capacity. Required: a. Using the traditional income statement format, prepare a value income statement. (Loss amounts should be indicated with a minus sign.) Answer is complete but not entirely correct. DELUXE LIMO SERVICE Value Income Statement For the Month Ending March 31 Nonvalue- Value- added added Total Activities Activities
Required: a. Using the traditional income statement format, prepare a value income statement. (Loss amounts should be indicated with a minus sign.) Answer is complete but not entirely correct. DELUXE LIMO SERVICE Value Income Statement For the Month Ending March 31 Nonvalue- added Value- added Activities Total Activities Sales revenue $ 250,000 O S 250,000 Cost of services sold: 71,250 O 95,000 O Variable costs of operations, excluding labor costs 3,750 75,000 O Employee wages and salaries 5,000 O 10,000 O 100,000 Fixed cost of automobiles 15,000 O Gross margin (loss) Administrative expenses: 20,000 O 11,250 O 20.000 O 12.500 O Manager salaries Building costs 1,250 O Operating income (loss) 0000
Transcribed Image Text:Required: a. Using the traditional income statement format, prepare a value income statement. (Loss amounts should be indicated with a minus sign.) Answer is complete but not entirely correct. DELUXE LIMO SERVICE Value Income Statement For the Month Ending March 31 Nonvalue- added Value- added Activities Total Activities Sales revenue $ 250,000 O S 250,000 Cost of services sold: 71,250 O 95,000 O Variable costs of operations, excluding labor costs 3,750 75,000 O Employee wages and salaries 5,000 O 10,000 O 100,000 Fixed cost of automobiles 15,000 O Gross margin (loss) Administrative expenses: 20,000 O 11,250 O 20.000 O 12.500 O Manager salaries Building costs 1,250 O Operating income (loss) 0000
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