Question

Find Solution for Yellow Boxes with formulas.
B5 1 Jay Corporation has decided to prepare contribution income statements for internal planning. 3 Budgeted information for Quarter 1 of Year 3: 4Sales in units 5 |Sales price per unit 17,000 48.00 7 After analyzing expenses, the company has determined the following cost patterns. 8 Cost of Goods Sold (per unit) 9 Sales Commissions (per dollar of sales) 10 11 Administrative Salaries (per quarter) 45,000.00 12 Rent Expense (per quarter) 13 Depreciation Expense (per quarter) 14 15 16 1. Prepare a contribution margin income statement for Quarter 1 of Year 3 17 18 19 20 21 29.00 9.50% $27,000.00 $36,000.00 Jay Corporation Budgeted Income Statement For Year 3, Quarter 1

Answer 1

CONTRIBUTION MARGIN INCOME STATEMENT FOR QUARTER 1 OF YEAR 3

PARTICULARS	DETAIL	AMT($)	AMT($)
A. SALES	(17000 x 48)		816000 .
LESS: VARIABLE COST
COST OF GOOD SOLD	(17000 x 29)	493000
SALES COMMISSION	(816000 x 9.5%)	77520
B. TOTAL VARIABLE EXPENSES			(570520)
C. CONTRIBUTION	(A - B)		245480
LESS: FIXED COST
ADMINISTRATION SALARIES	45000
RENT EXPENSES	27000
DEPRECIATION EXPENSES	36000
D. TOTAL FIXED COST			(108000)
E. NET OPERATING PROFIT	(C - D)		137480