The Printing Shop is a large retailer of equipment for printers. An income statement for the company's color printer department for the most recent quarter is presented below: The Printer Shop Income Statement-Color Printer Department For First Quarter of Current Year Sales Less cost of goods sold Gross margin Less operating expenses: Selling expenses Administrative expenses Net income $195,000 145,000 $700,000 250,000 450,000 340,000 $110,000 The printers sell, on average, for $350 each. The department's variable selling expenses are $40 per printer sold. The remaining selling expenses are fixed. The administrative expenses are 30% variable and 70% fixed. The company purchases its printers from a supplier at a cost of $125 per liner. Required: In good form, prepare an income statement for the quarter, using the contribution approach
The Printing Shop is a large retailer of equipment for printers. An income statement for the company's color printer department for the most recent quarter is presented below: The Printer Shop Income Statement-Color Printer Department For First Quarter of Current Year Sales Less cost of goods sold Gross margin Less operating expenses: Selling expenses Administrative expenses Net income $195,000 145,000 $700,000 250,000 450,000 340,000 $110,000 The printers sell, on average, for $350 each. The department's variable selling expenses are $40 per printer sold. The remaining selling expenses are fixed. The administrative expenses are 30% variable and 70% fixed. The company purchases its printers from a supplier at a cost of $125 per liner. Required: In good form, prepare an income statement for the quarter, using the contribution approach
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Question 1)
The Printing Shop is a large retailer of equipment for printers. An income statement for the company's
color printer department for the most recent quarter is presented below:
The Printer Shop
Income Statement - Color Printer Department
For First Quarter of Current Year
Sales
Less cost of goods sold
Gross margin
Less operating
expenses:
Selling expenses
Administrative
expenses
Net income
$195,000
145,000
$700,000
250,000
450,000
340,000
$110,000
The printers sell, on average, for $350 each. The department's variable selling expenses are $40 per
printer sold. The remaining selling expenses are fixed. The administrative expenses are 30% variable and
70% fixed. The company purchases its printers from a supplier at a cost of $125 per liner.
Required:
In good form, prepare an income statement for the quarter, using the contribution approach
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