Dog Using the following income statements, prepare a contribution margin income statement for March. (Round per unit answers to 2decimal places, e.g. 52.75.)Sales revenueCost of goods soldGross profitRent expenseWages expenseShipping expenseUtilities expenseAdvertising expenseInsurance expenseOperating incomeFebruary March$25,000 $37,50015,00010,00015,0001,5003,5001,1007501,000585$6,56522,5001,5005,0001,6507501,400585$11,615 Your answer is partially correct.Blake is evaluating two options to increase the number of mascots sold next month. First, he believes he can increase sales byadvertising in the university newspaper. Blake can purchase a package of 12 ads over the next month for a total of $1,500. Hebelieves the ads will increase the number of stuffed mascots sold from 1,500 to 2.200. A second option would be to reduce theselling price. Blake believes a 15% decrease in the price will result in 2.400 mascots sold.Calculate the operating income for each options? (Round per unit to 2 decimal places and final answers to 0 decimal places, eg. 5,275.)Option 1 $Option 2 $Operating IncomeOption 15,426Which plan should Blake implement?4,025At what level of sales would he be indifferent between the two plans? (Round per unit to 2 decimal places and round up the finalanswer to the nearest whole unit, eg. 5,275)eTextbook and MedialmascotsAristotel

Contribution Margin Income StatementA contribution margin income statement is a kind of income…

Using the following income statements, prepare a contribution margin income statement for March. (Round p decimal places, e.g. 52.75.) Sales revenue Cost of goods sold Gross profit Rent expense Wages expense Shipping expense Utilities expense Advertising expense Insurance expense Operating income February $25,000 10,000 15,000 1,500 3,500 1.100 750 1,000 585 March $37,500 15,000 22,500 1,500 5,000 1,650 750 1,400 585 $6,565 $11,615

Using the following income statements, prepare a contribution margin income statement for March. (Round p decimal places, e.g. 52.75.) Sales revenue Cost of goods sold Gross profit Rent expense Wages expense Shipping expense Utilities expense Advertising expense Insurance expense Operating income February $25,000 10,000 15,000 1,500 3,500 1.100 750 1,000 585 March $37,500 15,000 22,500 1,500 5,000 1,650 750 1,400 585 $6,565 $11,615

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...

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