Question

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1 Jay Corporation has decided to prepare contribution income statements for internal planning. Budgeted information for Quarter 1 of Year 3: Sales in units Sales price per unit $ 17,000 48.00 5 7 After analyzing expenses, the company has determined the following cost patterns. 8 Cost of Goods Sold (per unit) $ 29.00 9 Sales Commissions (per dollar of sales) 9.50% Administrative Salaries (per quarter) Rent Expense (per quarter) Depreciation Expense (per quarter) $ $ $ 45,000.00 27,000.00 36,000.00 16 1. Prepare a contribution margin income statement for Quarter 1 of Year 3 Jay Corporation Budgeted Income Statement For Year 3, Quarter 1

Answer 1

Answer-

Jay Corporation
Budgeted Income Statement
For Year 3, Quarter 1
Particulars		Amount
		$
Sales	17000 units*$48 per unit	816000
Less-- Variable expenses
Cost of goods sold	17000 units*$29 per unit	493000
Sales commissions	$816000*9.50%	77520
Total variable expenses		570520
Contribution margin		245480
Less- Fixed expenses
Administrative salaries	45000
Rent expense	27000
Depreciation expense	36000
Total fixed expense		108000
Net opertaing income		137480