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Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,000 Selling price per unit $ 580 Unit cost of goods sold $ 402 Variable selling expense per unit $ 50 Total fixed selling expense $ 124, 500 Variable administrative expense per unit $ 20 Total fixed administrative expense $ 206, 400 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.

Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,000 Selling price per unit $ 580 Unit cost of goods sold $ 402 Variable selling expense per unit $ 50 Total fixed selling expense $ 124, 500 Variable administrative expense per unit $ 20 Total fixed administrative expense $ 206, 400 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.

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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Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,000 Selling price per unit $ 580 Unit cost of goods sold $ 402 Variable selling expense per unit $ 50 Total fixed selling expense $ 124, 500 Variable administrative expense per unit $ 20 Total fixed administrative expense $ 206, 400 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.
Transcribed Image Text:Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 5,000 Selling price per unit $ 580 Unit cost of goods sold $ 402 Variable selling expense per unit $ 50 Total fixed selling expense $ 124, 500 Variable administrative expense per unit $ 20 Total fixed administrative expense $ 206, 400 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.
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