Question

Coronado, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31: $ 751.000 385,500 365,500 Sales revenue Cost of goods sold Gross margin Operating expenses Selling expense Administrative expense Net operating income $ 24,430 50.650 75.000 $ 290,420 Coronado sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales. Prepare a contribution format income statement for January. (Round per unit cast to 2 decimal places, eg. 52.75 and all other answers to decimal places, eg5,275.) $ $ $ $ $

Please answer in the graphs format for clear understanding.

Answer 1

$ $ Per Unit 751,000 $250.00 Sales Revenue Variable Expense Cost of goods sold $385,500 Selling Expense $ 19,526 Administrative Expense $ 37,550 Total Variable Expense Contribution Margin Fixed Expense Selling Expense $ 4,904 Administrative Expense $ 13,100 Total Fixed Expense Operating Income $128.33 $ 6.50 $ 12.50 442,576 $147.33 308,424 $102.67 $ $ $ $ 18,004 290,420 Operating Expense = $147.33 X + $18004 Contribution Margin (2700 Coats x $102.67) $ 277,209 Note : Please comment down for any issues