Homework Answers
Contribution format statement expresses variable costs and fixed costs separately. Traditional format of net income calculates gross margin and net margin without separation of fixed and variable costs
Statement A is correct
Statement is incorrect because the selling and administrative expenses are not separated
Gross margin is reported on traditional statement and not on the contribution format statement
There is no requirement of contribution format under GAAP
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Question 3 3 pts The advantage of the Contribution Format Income Statement is that it helps...
Complete the following Income Statement and Contribution Statement. Where ever there is a "?", a formula/number...
Complete the following Income Statement and Contribution
Statement. Where ever there is a "?", a formula/number needs to be
entered.
Sales Variable costs: $12,000 Cost of goods sold Variable selling Variable administrative $6,000 $600 $400 Fixed costs: Fixed selling Fixed administrative $2,500 $1,500 Traditional Format Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative Net operating income Contribution Format Income Statement Sales Variable expenses Cost of goods sold Variable selling Variable administration Contribution margin...
5 Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate...
5 Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the selling price per unit 4. Calculate the variable cost per unit 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales 16 Complete this question by entering your answers in the tabs below R2 Resto...
2-25 Cost estimation; contribution format income statement (LO 2, 3) J Bryant, Ltd. is a local...
2-25 Cost estimation; contribution format income statement (LO 2, 3) J Bryant, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31: Sales revenue $750,000 300,000 Cost of goods sold Gross margin Less operating expenses Selling expense Administrative expense 450,000 $23,560 49,500 73,060 $376,940 Net operating income Bryant sells its coats for $300 each. Selling expenses consist of fixed costs plus a commission of $6 per coat. Administrative expenses consist...
What am I missing? $ 375,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost...
What am I missing?
$ 375,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost of goods sold $ 262,500 Selling expense + 18,750 Administrative expense 18,750 300.000 75.000 Contribution margin Fixed expenses Selling expense Administrative expense $ 37,500 15,000 Fixed manufacturing overhead Net operating income 52.500 22.500 $ Reg < Prey 5 of 8 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:...
Exercise 19-8 Contribution margin format income statement LO P2 Polarix Is a retailer of ATVs (all-terrain...
Exercise 19-8 Contribution margin format income statement LO P2 Polarix Is a retailer of ATVs (all-terrain vehicles) and accessories. An Income statement for its Consumer ATV Department for the ent year follows. ATVs sell for $4,000 each. Variable selling expenses are $320 per ATV. The remaining selling expenses are fix Administrative expenses are 70% variable and 30% fixed. The company does not manufacture its own ATVs, It purchases them from a supplier for $1,920 each. POLARIX Income Statement-Consumer ATV Department...
Shown here is an income statement in the traditional format for a firm with a sales...
Shown here is an income statement in the traditional format for a firm with a sales volume of 7,800 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,600+$2.25/unit) Gross profit Operating expenses $34,500 23,150 $11,350 Selling ($1,190 +$0.10/unit) Administration ($3,900 $0.20/unit) 1,970 5,460 $ 3,920 Operating income Required a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Revenue Variable expense Cost of goods sold Selling expenses Administrative expenses Total variable expenses Contribution...
a contribution margin income statement has which of the following characteristics? A.It is the same format...
a contribution margin income statement has which of the following characteristics? A.It is the same format as a traditional GAAP income statement B. Net income on the contribution margin statement is not the same as net income on the traditional income statement. C. Costs and expenses are presented by function...COGS, Operating Expenses,etc. D. Costs and expenses are separated into variable and fixed cost components
The contribution margin format income statement is not widely used for external financial reporting, but is...
The contribution margin format income statement is not widely used for external financial reporting, but is allowed by GAAP. true or false
Exercise 19-8 Contribution margin format income statement LO P2 Polarix is a retailer of ATVs (all-terrain...
Exercise 19-8 Contribution margin format income statement LO P2 Polarix is a retailer of ATVs (all-terrain vehicles) and accessories. An income statement for its Consumer ATV Department for the current year follows. ATVs sell for $4,000 each. Variable selling expenses are $220 per ATV. The remaining selling expenses are fixed. Administrative expenses are 10% variable and 90% fixed. The company does not manufacture its own ATVs; it purchases them from a supplier for $1,850 each. POLARIX Income Statement—Consumer ATV Department...
Problem 1-19 Traditional and Contribution Format Income Statements (L01-6] Todrick Company is a merchandiser that reported...
Problem 1-19 Traditional and Contribution Format Income Statements (L01-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 210,000 $ 14,000 $ 140,000 7,000 Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income es eses es eses es eses es 8,400 10,500 42,000 12,600 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format...
Complete the following Income Statement and Contribution
Statement. Where ever there is a "?", a formula/number needs to be
entered.
Sales Variable costs: $12,000 Cost of goods sold Variable selling Variable administrative $6,000 $600 $400 Fixed costs: Fixed selling Fixed administrative $2,500 $1,500 Traditional Format Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses Selling Administrative Net operating income Contribution Format Income Statement Sales Variable expenses Cost of goods sold Variable selling Variable administration Contribution margin...
5 Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the selling price per unit 4. Calculate the variable cost per unit 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales 16 Complete this question by entering your answers in the tabs below R2 Resto...
2-25 Cost estimation; contribution format income statement (LO 2, 3) J Bryant, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31: Sales revenue $750,000 300,000 Cost of goods sold Gross margin Less operating expenses Selling expense Administrative expense 450,000 $23,560 49,500 73,060 $376,940 Net operating income Bryant sells its coats for $300 each. Selling expenses consist of fixed costs plus a commission of $6 per coat. Administrative expenses consist...
What am I missing?
$ 375,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost of goods sold $ 262,500 Selling expense + 18,750 Administrative expense 18,750 300.000 75.000 Contribution margin Fixed expenses Selling expense Administrative expense $ 37,500 15,000 Fixed manufacturing overhead Net operating income 52.500 22.500 $ Reg < Prey 5 of 8 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:...
Exercise 19-8 Contribution margin format income statement LO P2 Polarix Is a retailer of ATVs (all-terrain vehicles) and accessories. An Income statement for its Consumer ATV Department for the ent year follows. ATVs sell for $4,000 each. Variable selling expenses are $320 per ATV. The remaining selling expenses are fix Administrative expenses are 70% variable and 30% fixed. The company does not manufacture its own ATVs, It purchases them from a supplier for $1,920 each. POLARIX Income Statement-Consumer ATV Department...
Shown here is an income statement in the traditional format for a firm with a sales volume of 7,800 units. Cost formulas also are shown: Revenues Cost of goods sold ($5,600+$2.25/unit) Gross profit Operating expenses $34,500 23,150 $11,350 Selling ($1,190 +$0.10/unit) Administration ($3,900 $0.20/unit) 1,970 5,460 $ 3,920 Operating income Required a. Prepare an income statement in the contribution margin format. Contribution Margin Income Statement Revenue Variable expense Cost of goods sold Selling expenses Administrative expenses Total variable expenses Contribution...
Problem 1-19 Traditional and Contribution Format Income Statements (L01-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 210,000 $ 14,000 $ 140,000 7,000 Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income es eses es eses es eses es 8,400 10,500 42,000 12,600 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format...
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