Question

Handy's Hats makes the world's best hats. Information for the last eight months follows: Number of Hats Total Month Produced Cost January 8,000 7,000 February 4,500 5,000 March 7.000 6,250 April 8,600 7,750 May 3,750 5,000 6,000 6,250 July 3,000 4,250 August 5,000 5,750 June Suppose that Handy's expects to sell 4,000 hats during the month of September and that each hat sells for $2.75. Handy performed a least-squares regression and obtained the following results: Intercept X Variable 1 Coefficients 2718.59 0.56 Prepare Handy's contribution margin income statement for the month of September. (Round your answers to 2 decimal places. HANDY'S HATS Contribution Margin Income Statement Month of September Cost of goods sold Sales revenue Interest expense Net income after taxes Contribution margin Total variable costs Total fixed costs Net operating income

Answer 1

Prepare contribution margin income statement for the month of September as follows: А в HANDY'S HATS Contribution Margin Income Statement Month of September 4 Sales revenue $11,000.00 5 Total variable costs $2.240.00 6 Contribution margin $8,760.00 7 Total fixed costs $2.718.59 8 Net operating income $6,041.41 Calculations are as follows: B HANDY'S HATS 2 Contribution Margin Income Statement Month of September 4 Sales revenue =4000*2.75 5 Total variable costs =4000*0.56 6 Contribution margin =B4-B5 7 Total fixed costs 2718.59 8 Net operating income =B6-B7