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 $18.00 $ 4.50 2,400 units Fixed expenses are $2,970 per month. Required: 1. Assuming the sales mix above, do the following: Warm $ 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 $27.00 $13.50 800 units % 0.00 $ Cozy 0 % 0.00 $ Total 0 0 % 0.00
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 $18.00 $ 4.50 2,400 units Fixed expenses are $2,970 per month. Required: 1. Assuming the sales mix above, do the following: Warm $ 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 $27.00 $13.50 800 units % 0.00 $ Cozy 0 % 0.00 $ Total 0 0 % 0.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Haresh
Transcribed Image Text: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
$18.00
$ 4.50
2,400 units
Fixed expenses are $2,970 per month.
Required:
1. Assuming the sales mix above, do the following:
Warm
$
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
$27.00
$13.50
800 units
%
0.00 $
Cozy
0
%
0.00
$
Total
0
0
%
0.00
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