M5-16 (Algo) Preparing a Contribution Margin Income Statement [LO 5-5] Handy’s Hats makes the world’s best hats. Information for the last eight months follows: Month Number of Hats Produced Total Cost January 4,750 5,900 February 3,150 4,850 March 2,600 4,200 April 4,800 6,125 May 6,400 7,655 June 7,350 8,575 July 5,600 7,000 August 8,550 9,555 Suppose that Handy’s expects to sell 6,000 hats during the month of September and that each hat sells for $2.75. Handy performed a least-squares regression and obtained the following results: Coefficients Intercept 1,855.99 X Variable 1 0.90 Prepare Handy’s contribution margin income statement for the month of September. (Round your answers to 2 decimal places.) M5-16 (Algo) Preparing a Contribution Margin Income Statement [LO 5-5] Handy’s Hats makes the world’s best hats. Information for the last eight months follows: Month Number of Hats Produced Total Cost January 4,750 5,900 February 3,150 4,850 March 2,600 4,200 April 4,800 6,125 May 6,400 7,655 June 7,350 8,575 July 5,600 7,000 August 8,550 9,555 Suppose that Handy’s expects to sell 6,000 hats during the month of September and that each hat sells for $2.75. Handy performed a least-squares regression and obtained the following results: Coefficients Intercept 1,855.99 X Variable 1 0.90 Prepare Handy’s contribution margin income statement for the month of September. (Round your answers to 2 decimal places.)

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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M5-16 (Algo) Preparing a Contribution Margin Income Statement [LO 5-5]

Handy’s Hats makes the world’s best hats. Information for the last eight months follows:

Month	Number of Hats Produced	Total Cost
January	4,750	5,900
February	3,150	4,850
March	2,600	4,200
April	4,800	6,125
May	6,400	7,655
June	7,350	8,575
July	5,600	7,000
August	8,550	9,555

Suppose that Handy’s expects to sell 6,000 hats during the month of September and that each hat sells for $2.75.

Handy performed a least-squares regression and obtained the following results:

	Coefficients
Intercept	1,855.99
X Variable 1	0.90

Prepare Handy’s contribution margin income statement for the month of September. (Round your answers to 2 decimal places.)

M5-16 (Algo) Preparing a Contribution Margin Income Statement [LO 5-5]

Handy’s Hats makes the world’s best hats. Information for the last eight months follows:

Month	Number of Hats Produced	Total Cost
January	4,750	5,900
February	3,150	4,850
March	2,600	4,200
April	4,800	6,125
May	6,400	7,655
June	7,350	8,575
July	5,600	7,000
August	8,550	9,555

Suppose that Handy’s expects to sell 6,000 hats during the month of September and that each hat sells for $2.75.

Handy performed a least-squares regression and obtained the following results:

	Coefficients
Intercept	1,855.99
X Variable 1	0.90

Prepare Handy’s contribution margin income statement for the month of September. (Round your answers to 2 decimal places.)

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