1.
Milden Company | |||
Contribution Format Income Statement | |||
For the Next Quarter | |||
Sales revenue ( 39,000 x 65) | 2,535,000 | ||
Variable expenses: | |||
Cost of goods sold ( 39,000 x 32) | 1,248,000 | ||
Sales commission (2,535,000 x 5% ) | 126,750 | ||
Shipping expense ( 39,000 x 4) | 156,000 | ||
Total Variable expenses | -1530,750 | ||
Contribution Margin | $1,004,250 | ||
Fixed Expenses: | |||
Advertising expense | 188,000 | ||
Shipping expense | 42,000 | ||
Administrative salaries | 98,000 | ||
Insurance expense | 10,800 | ||
Depreciation expense | 68,000 | ||
Total Fixed expenses | -406,800 | ||
Operating Income | $597,450 |
2.
Milden Company | ||
Traditional Income Statement | ||
For the Next Quarter | ||
Sales revenue ( 39,000 x 65) | 2,535,000 | |
Cost of goods sold ( 39,000 x 32) | -1,248,000 | |
Gross Profit | $1,287,000 | |
Selling & Administrative expenses: | ||
Advertisement expense | 188,000 | |
Sales commission (2,535,000 x 5% ) | 126,750 | |
Shipping expense ( 42,000 + 39,000 x 4) | 198,000 | |
Administrative salaries | 98,000 | |
Insurance expense | 10,800 | |
Depreciation expense | 68,000 | |
Total Selling and Administrative expense | -$689,550 | |
Operating Income | $597,450 |
.
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Problem 1-25 Traditional and Contribution Format Income Statements (LO1-6) Milden Company is a merchandiser that plans...
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