F Start Stop Corporation Comparative Income Statement Three Months Ended December 31, 2018 21 Low 22 Change 23 24 Shipping Expense 25 Sal & Comm Exp Varlable Cost per Unit Varlable Cost per Unit Sales in Units Sales Revenue Cost of Goods Sold Gross Margin Selling & Admin Expenses: Shipping Expense Advertising Expense Salaries & Commissions Expense Insurance Expense Depreciation Expense Total Selling & Admin Expenses Net Operating Income 12,000 $1,200,000 $780.000 $420,000 8,000 $800,000 10,000 $1,000,000 $650,000 $350,000 26 27 Flxed Costs 28 Flned Costs $520,000 Shipping Expense Salarles & Comnissions Expense $280,000 29 30 Mixed Cost Function(Shipping Expense) 31 Mixed Cost Function(Sal & Comm Expense $35,000 $70,000 $122,000 $43,000 $70,000 $52,000 ) $70,000 32 $130,000 $165,000 33 $24,000 $24,000 Start Stop Corporation Income Staternent-Contribution Format $24,000 34 $4,000 $255,000 $25,000 $4,000 $315,000 $105,000 $4.000 35 $271.000 $79.000 36 Month Ended December 31. 2018 37 38 Sales Revenue 39 Variable Expenses: 40 Salarie Shipping Experse 41 Comm 42 Expene 43 Total Variable Expenses 44 Contribution Margin 45 Fixed Expenses High Low Change 46 47 48 Shipping Expense Sal & Comm Exp Variable Cost per Unit 49 Variable Cost per Unit 50 Fixed Costs Fixed Costs Shipping Expense Salaries & Commissions Expense 51 Total Fixed Expenses 52 Net Operating Income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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E
F
G
H
H.
Start Stop Corporation
Comparative Income Statement
Three Months Ended December 31, 2018
21 Low
22 Change
2.
23
4.
Sales in Units
Sales Revenue
8,000
$800,000
24 Shipping Expense
25 Sal & Comm Exp
Varlable Cost per Unit
Varlable Cost per Unit
10,000
$1,000,000
$650,000
$350,000
12,000
$1,200,000
$780,000
$420,000
6.
26
27 Flxed Costs
28 Flxed Costs
7 Cost of Goods Sold
8 Gross Margin
o Selling & Admin Expenses:
10 Shipping Expense
11 Advertising Expense
12 Salaries & Commissions Expense
13 Insurance Expense
14 Depreciation Expense
Total Selling & Admin Expenses
16 Net Operating Income
$520,000
$280,000
Shipping Expense
Salarles & Commissions Expense
$35,000
$70,000
$43,000
$70,000
$52,000
$70,000
$165,000
29
30 Mixed Cost Function(Shipping Expense)
31 Mixed Cost Function(Sal & Comm Expense =
32
$122,000
$24,000
$130,000
$24,000
33
$24.000
34
Slart Stop Corporation
$4,000
$255,000
$25,000
$4.000
$4,000
$315,000
$105,000
35
Income Staternent-Contribution Format
15
$271.000
36
Month Ended December 31, 2018
$79,000
37
38 Sales Revenue
39 Variable Expenses:
17
18
40
Shipping
Expente
Salaries &
Comm
41
19
42
Expense
Total Variable Expenses
44 Contribution Margin
45 Fixed Expenses:
43
20 High
21 Low
22 Change
46
23
47
48
24 Shipping Expense
25 Sal & Comm Exp
Variable Cost per Unit
Variable Cost per Unit
49
50
26
27 Fixed Costs
28 Fixed Costs
Shipping Expense
Salaries & Commissions Expense
51 Total Fixed Expenses
52 Net Operatng Income
Transcribed Image Text:E F G H H. Start Stop Corporation Comparative Income Statement Three Months Ended December 31, 2018 21 Low 22 Change 2. 23 4. Sales in Units Sales Revenue 8,000 $800,000 24 Shipping Expense 25 Sal & Comm Exp Varlable Cost per Unit Varlable Cost per Unit 10,000 $1,000,000 $650,000 $350,000 12,000 $1,200,000 $780,000 $420,000 6. 26 27 Flxed Costs 28 Flxed Costs 7 Cost of Goods Sold 8 Gross Margin o Selling & Admin Expenses: 10 Shipping Expense 11 Advertising Expense 12 Salaries & Commissions Expense 13 Insurance Expense 14 Depreciation Expense Total Selling & Admin Expenses 16 Net Operating Income $520,000 $280,000 Shipping Expense Salarles & Commissions Expense $35,000 $70,000 $43,000 $70,000 $52,000 $70,000 $165,000 29 30 Mixed Cost Function(Shipping Expense) 31 Mixed Cost Function(Sal & Comm Expense = 32 $122,000 $24,000 $130,000 $24,000 33 $24.000 34 Slart Stop Corporation $4,000 $255,000 $25,000 $4.000 $4,000 $315,000 $105,000 35 Income Staternent-Contribution Format 15 $271.000 36 Month Ended December 31, 2018 $79,000 37 38 Sales Revenue 39 Variable Expenses: 17 18 40 Shipping Expente Salaries & Comm 41 19 42 Expense Total Variable Expenses 44 Contribution Margin 45 Fixed Expenses: 43 20 High 21 Low 22 Change 46 23 47 48 24 Shipping Expense 25 Sal & Comm Exp Variable Cost per Unit Variable Cost per Unit 49 50 26 27 Fixed Costs 28 Fixed Costs Shipping Expense Salaries & Commissions Expense 51 Total Fixed Expenses 52 Net Operatng Income
H.
C
Start Stop Corporation
Income Statement-Contribution Format
Month Ended December 31, 2010
Salaries &
1
1.
Shipping
Expense
Comm
2
3
Units
Expense
$165,000
$122,000
4
High
12,000
$52,000
Sales Revenue
$1,200,000
3
Low
8,000
Variable Expenses:
$35,000
Change
4,000
$17,000
$43,000
Cost of Goods Sold
$780,000
7
Shipping Expense
Salaries & Commissions Expense
Total Variable Expenses
8
$51,000
Shipping Expense
Sal & Comm Exp
$129,000
$960,000
$17000/4,000-
=======>
$4.25 Variable Cost per Unit
10
7
$43,000/4,000=======
$10.75 Variable Cost per Unit
11
Contribution Margin
12 Fixed Expenses:
$240,000
8
Fixed Costs $52,000-12,000($4.25)%=D%33====-===>
10 Fixed Costs $165,000-12,000($10.75)=
13 Shipping Expense
14 Advertising Expense
15 Salaries & Commissions Expense
Insurance Expense
17 Depreciation Expense
Total Fixed Expenses
9
$1,000 Shipping Expense
$36,000 Salaries & Commissions Expense
$1,000
$70,000
$36,000
$24,000
11
16
Mixed Cost Function(Shipping Expense)=33==========
13 Mixed Cost Function(Sal & Comm Expense)-
12
Y=$1,000+$4.25X
$4,000
-3-===-
Y=$36,000+$ 10.75X
$135,000
$105,000
18
14
19
Net Operating Income
15
20
21
16
Transcribed Image Text:H. C Start Stop Corporation Income Statement-Contribution Format Month Ended December 31, 2010 Salaries & 1 1. Shipping Expense Comm 2 3 Units Expense $165,000 $122,000 4 High 12,000 $52,000 Sales Revenue $1,200,000 3 Low 8,000 Variable Expenses: $35,000 Change 4,000 $17,000 $43,000 Cost of Goods Sold $780,000 7 Shipping Expense Salaries & Commissions Expense Total Variable Expenses 8 $51,000 Shipping Expense Sal & Comm Exp $129,000 $960,000 $17000/4,000- =======> $4.25 Variable Cost per Unit 10 7 $43,000/4,000======= $10.75 Variable Cost per Unit 11 Contribution Margin 12 Fixed Expenses: $240,000 8 Fixed Costs $52,000-12,000($4.25)%=D%33====-===> 10 Fixed Costs $165,000-12,000($10.75)= 13 Shipping Expense 14 Advertising Expense 15 Salaries & Commissions Expense Insurance Expense 17 Depreciation Expense Total Fixed Expenses 9 $1,000 Shipping Expense $36,000 Salaries & Commissions Expense $1,000 $70,000 $36,000 $24,000 11 16 Mixed Cost Function(Shipping Expense)=33========== 13 Mixed Cost Function(Sal & Comm Expense)- 12 Y=$1,000+$4.25X $4,000 -3-===- Y=$36,000+$ 10.75X $135,000 $105,000 18 14 19 Net Operating Income 15 20 21 16
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