Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Warm Cozy $15.00 Selling price per pair Variable expenses per pair Number of pairs sold monthly $10.00 $ 2.50 $ 7.50 2,100 units 700 units Fixed expenses are $2,520 per month.

Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Warm Cozy $15.00 Selling price per pair Variable expenses per pair Number of pairs sold monthly $10.00 $ 2.50 $ 7.50 2,100 units 700 units Fixed expenses are $2,520 per month.

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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Question

Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners-
Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below:
Warm
Cozy
$15.00
Selling price per pair
Variable expenses per pair
Number of pairs sold monthly
$10.00
$ 2.50
$ 7.50
2,100 units
700 units
Fixed expenses are $2,520 per month.

a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the
company as a whole. (Round percentage answers to 2 decimal places.)
WARM HANDS
Contribution Income Statement
Warm
Total
%
0
0
$
0.00 $
Cozy
0
%
0.00
$
O
%
0.00

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Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners- Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below: Selling price per pair Variable expenses per pair Number of pairs sold monthly Warm $6.00 $ 1.50 Fixed expenses are $2,880 per month. Required: 1. Assuming the sales mix above, do the following: $ 3,000 units a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) WARM HANDS Contribution Income Statement Warm 0 Cozy $9.00 $4.50 1,000 units % 0.00 $ Cozy 0 % 0.00 $ Total 0 0 % 0.00
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