Sales Revenue $730,800 Variable Cost of Goods Sold $144,100 Fixed Cost of Goods Sold $119,400 Variable Selling and Administrative Costs $112,300 Fixed Selling and Administrative Costs $74,000 1. Calculate the gross profit and operating income for May using absorption costing. Cost of Goods Sold Gross Profit Amazin' 69 Corp. Income Statement For Month Ending May 31, 20XX Selling and Administrative Costs: Operating Income 2. Calculate the contribution margin and operating income for May using variable costing. Amazin' 69 Corp. Contribution Margin Income Statement For Month Ending May 31, 20XX Variable Costs Contribution Margin Fixed Costs ALP
Sales Revenue $730,800 Variable Cost of Goods Sold $144,100 Fixed Cost of Goods Sold $119,400 Variable Selling and Administrative Costs $112,300 Fixed Selling and Administrative Costs $74,000 1. Calculate the gross profit and operating income for May using absorption costing. Cost of Goods Sold Gross Profit Amazin' 69 Corp. Income Statement For Month Ending May 31, 20XX Selling and Administrative Costs: Operating Income 2. Calculate the contribution margin and operating income for May using variable costing. Amazin' 69 Corp. Contribution Margin Income Statement For Month Ending May 31, 20XX Variable Costs Contribution Margin Fixed Costs ALP
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
![Amazin' 69 Corp. reports the following information for May:
Information
Amount
Sales Revenue $730,800
Variable Cost of Goods Sold $144,100
Fixed Cost of Goods Sold $119,400
Variable Selling and Administrative Costs $112,300
Fixed Selling and Administrative Costs $74,000
1. Calculate the gross profit and operating income for May using absorption costing.
Cost of Goods Sold
Gross Profit
Amazin' 69 Corp.
Income Statement
For Month Ending May 31, 20XX
Selling and Administrative Costs:
Operating Income
2. Calculate the contribution margin and operating income for May using variable costing.
Amazin' 69 Corp.
Contribution Margin Income Statement
For Month Ending May 31, 20XX
Variable Costs
Contribution Margin
Fixed Costs
Operating Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbbbfda24-e02d-477d-af1e-536a63cfddb8%2Fcb5eee38-bfd2-40fc-8ea3-8782b4287d64%2Fcf26bi6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Amazin' 69 Corp. reports the following information for May:
Information
Amount
Sales Revenue $730,800
Variable Cost of Goods Sold $144,100
Fixed Cost of Goods Sold $119,400
Variable Selling and Administrative Costs $112,300
Fixed Selling and Administrative Costs $74,000
1. Calculate the gross profit and operating income for May using absorption costing.
Cost of Goods Sold
Gross Profit
Amazin' 69 Corp.
Income Statement
For Month Ending May 31, 20XX
Selling and Administrative Costs:
Operating Income
2. Calculate the contribution margin and operating income for May using variable costing.
Amazin' 69 Corp.
Contribution Margin Income Statement
For Month Ending May 31, 20XX
Variable Costs
Contribution Margin
Fixed Costs
Operating Income
![Amazin' 69 Corp.
Income Statement
For Month Ending May 31, 20XX
Fixed Cost of Goods Sold
Fixed Selling and
Administrative Costs
Sales Revenue
Variable Cost of
Goods Sold
Variable Selling and
Administrative Costs
Operating Income
Calculate the contribution margin and operating income for May
Amazin' 69 Corp.
Contribution Margin Income Statement
For Month Ending May 31 20XX](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbbbfda24-e02d-477d-af1e-536a63cfddb8%2Fcb5eee38-bfd2-40fc-8ea3-8782b4287d64%2F87us1a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Amazin' 69 Corp.
Income Statement
For Month Ending May 31, 20XX
Fixed Cost of Goods Sold
Fixed Selling and
Administrative Costs
Sales Revenue
Variable Cost of
Goods Sold
Variable Selling and
Administrative Costs
Operating Income
Calculate the contribution margin and operating income for May
Amazin' 69 Corp.
Contribution Margin Income Statement
For Month Ending May 31 20XX
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1: Gross profit and net income using absorption Costing
sales revenue | 730,800.00 |
cost of goods sold | |
variable | 144,100.00 |
fixed | 119,400.00 |
gross profit | 467,300.00 |
selling and administration expenses | |
variable | 112,300.00 |
fixed | 74,000.00 |
operating income | 281,000.00 |
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education