Question

Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) $ 64,000 Less cost of goods sold ($62 per unit) 39,680 Gross margin 24,320 Less operating costs: Commissions expense ($7 per unit) $ 4,480 Salaries expense 7,900 Advertising expense 6,000 Shipping expense ($2 per unit) 1,280 19,660 Operating income $ 4,660 Per Unit select an income statement item $enter a dollar amount $enter a dollar amount Select an opening name for section one: Select an income statement item $enter a dollar amount enter a dollar amount Select an income statement item enter a dollar amount enter a dollar amount Select an income statement item enter a dollar amount enter a dollar amount Select a closing name for section one Enter a total amount for section one Enter a total amount for section one Select a summarizing line for the first part enter a total amount for the first part $enter a total amount per unit Select an opening name for section two: Select an income statement item enter a dollar amount Select an income statement item enter a dollar amount Select a closing name for section two Enter a total amount for section two Select a closing name for this statement $enter a total amount for this statement

Answer 1

Answer is given below

$64,000 Contribution format Income Statement Sales Revenue Less: Variable Cost Cost of Goods sold $39,680 Commission expense $4,480 Shipping expenses $1,280 Total Variable Cost Contribution (Sales- Variable Cost) Less: Fixed Cost Salaries expenses $7,900 Advertising expenses $6,000 Total Fixed cost Operating Income $45,440 $18,560 $13,900 $4,660