Restate the following income statement for a retailer in contribution format.Sales revenue ($100 per unit)Less cost of goods sold ($56 per unit)Gross marginLess operating costs:Commissions expense $7 per unit) $ 6.090Salaries expenseAdvertising expenseShipping expense ($2 per unit.Operating income7.8006.000$AS87.00048,720AREN38,28021.63016.650

Contribution format income statement is that income statement in which we segregate the variable…

Answered: Restate the following income statement…

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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Prepare a contribution format income statement
Assume the following information for a merchandising company: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit$2 Fixed administrative expenses Beginning merchandise inventory Ending merchandise inventory Merchandise purchases What is the gross margin? O $155,000 O $260,000 O $255,000 O $265,000 20,000 $30 $3 $50,000 $24,000 $19,000 $340,000
Cherokee Incorporated is a merchandiser that provided the following information: Amount Number of units sold 11,000 Selling price per unit $ 17 Variable selling expense per unit $ 2 Variable administrative expense per unit $ 2 Total fixed selling expense $ 18,000 Total fixed administrative expense $ 14,000 Beginning merchandise inventory $ 12,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 86,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.
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AJXKXJ923 Corp. is a merchandiser with a single product. Corp.'s accountants have provided the following cost data for two levels of sales volume. Sales units Cost of goods sold (ID#77379) Selling and Administrative costs Selling price per unit 10,000 $470,000 20,000 $800,000 $500,000 $150 $780,000 $150 Q)What's the best estimate of AJXKXJ923's net operating income if 15,920 units are sold? A.) $ Next > 14.of 25
Cherokee Incorporated is a merchandiser that provided the following information: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. Required 1 Required 2 Prepare a contribution format income statement. Complete this question by entering your answers in the tabs below. Cherokee, Incorporated Contribution Format Income Statement Sales Variable expenses: Cost of aonde enld Amount (71.000) 10,000 $ 16 $ 2 $ 2 $ 21,000 $ 14,000 $9,000 $ 25,000 $ 87,000 $ 160,000✔ ||
(1)Garcon Company | Pepper Company (2) Finished goods inventory, beginning $ 13,200 / $ 16, 750 Work in process inventory, beginning 18,000/ 22,650 Raw materials inventory, beginning 9, 800/12, 750 Rental cost on factory equipment 30, 250/26, 350 Direct labor 19, 400 / 39,400 Finished goods inventory, ending 17,300 / 16, 400 Work in process inventory, ending 26, 200/20, 400 Raw materials inventory, ending 8, 000/ 9,200 Factory utilities 14, 100/13, 750 General and administrative expenses 27, 500/53, 500 Indirect labor 12, 150 / 12, 260 Repairs-Factory equipment 4, 820/2, 350 Raw materials purchases 47,000/67,500 Selling expenses 62, 400 / 54,400 Sales 295, 320/394, 170 Cash 29, 000/24, 200 Accounts receivable, net 15,800 / 23,450
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. $ 435,000 $ 29,000 $ 290,000 $ 14,500 ? $ 17,400 $ 21,750 ? $ 87,000 $ 26,100 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in response to changes in unit sales? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 to 5 Req 6 Prepare a contribution format income statement. Todrick…
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The MER-92566 merchandising company reported the following information for last year: Amount $. 1,312,000 $ 410 $ 46 $ 18 $ 150,000 $ 105,000 $ 75,000 $ 115,000 $310,000 Sales Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases The MER-92566 company's contribution margin per unit is closest to: (Carry out your calculations up to 2 decimal places) O $392 O $346 O $262 O $364
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Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) Less cost of goods sold ($56 per unit) Gross margin Less operating costs: Commissions expense $7 per unit) $ 6.090 87,000 48,720 O 38,280