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Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Amount $1,521,000 Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases Sales Answer is complete but not entirely correct. Winter Leisure Traditional Income Statement Quarter ended December 31 S $ $ $ 400,000 $ 370,000 Required: 1. Prepare a traditional Income statement for the quarter ended December 31. $ 1,521,000 390 55 25 $ 99,000 $ 119,000 $ 371,000

Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Amount $1,521,000 Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases Sales Answer is complete but not entirely correct. Winter Leisure Traditional Income Statement Quarter ended December 31 S $ $ $ 400,000 $ 370,000 Required: 1. Prepare a traditional Income statement for the quarter ended December 31. $ 1,521,000 390 55 25 $ 99,000 $ 119,000 $ 371,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
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Winter Leisure is a retailer of snowboards. The Information below is for the quarter ended December 31: Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance. Merchandise inventory, ending balance Merchandise purchases Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Operating income Answer is complete but not entirely correct. Administrative expenses Winter Leisure Traditional Income Statement Quarter ended December 31 Required: 1. Prepare a traditional income statement for the quarter ended December 31. Sales Variable expenses: Selling expenses Administrative expenses Cost of goods sold Contribution margin Fixed expenses: Operating income Selling expenses Administrative expenses >> Winter Leisure Contribution Format Income Statement Quarter ended December 31 333 333 S 333 400,000 370,000 X Answer is not complete. $ 1,521,000 351,000 1,170,000 2. Prepare a contribution format Income statement for the quarter ended December 31. $ 400,000 370,000 S 770,000 400,000 $ 1,521,000 S $ 1,429,740 Amount $1,521,000 0 $ $ $ S 770,000 S 400,000 X $ $ $ 390 55 25 400,000 370,000 99,000 $ 119,000 $ 371,000
Transcribed Image Text:Winter Leisure is a retailer of snowboards. The Information below is for the quarter ended December 31: Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance. Merchandise inventory, ending balance Merchandise purchases Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Operating income Answer is complete but not entirely correct. Administrative expenses Winter Leisure Traditional Income Statement Quarter ended December 31 Required: 1. Prepare a traditional income statement for the quarter ended December 31. Sales Variable expenses: Selling expenses Administrative expenses Cost of goods sold Contribution margin Fixed expenses: Operating income Selling expenses Administrative expenses >> Winter Leisure Contribution Format Income Statement Quarter ended December 31 333 333 S 333 400,000 370,000 X Answer is not complete. $ 1,521,000 351,000 1,170,000 2. Prepare a contribution format Income statement for the quarter ended December 31. $ 400,000 370,000 S 770,000 400,000 $ 1,521,000 S $ 1,429,740 Amount $1,521,000 0 $ $ $ S 770,000 S 400,000 X $ $ $ 390 55 25 400,000 370,000 99,000 $ 119,000 $ 371,000
3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Contribution Answer is not complete. per snowboard 4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Operating income X Answer is not complete.
Transcribed Image Text:3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Contribution Answer is not complete. per snowboard 4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Operating income X Answer is not complete.
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