Question

$ Number of batches sold Pints produced with each batch Selling price per batch Variable materials per batch Variable labor per batch Variable Overhead per Batch Variable selling expenses per batch Variable administrative expenses per batch Total fixed selling expenses Executive Salaries Office Staff Salary Office Occupancy Fixed Factory Overhead 18,600 40 93.00 35.70 27.75 10.75 3.00 2.50 $ $ 40,000 110,000 40,000 10,000 30,000 $ Leaf Peepers Ice Cream, Inc. Traditional Income Statement - Projected For the Year Ended December 31, 2020 Leaf Peepers Ice Cream, Inc. Contribution Income Statement - Projected For the Year Ended December 31, 2020 Sales Cost of Goods Sold Gross Profit Sales Variable Costs Materials Labor Overhead Selling Administrative Total Variable Costs Contribution Margin Selling Expenses Administrative Expenses Total Selling & Administrative Expenses Net Operating Income Fixed Costs Selling Administrative Overhead

Answer 1

Working Notes:
	Calculation of Cost of Goods Sold
		No. of Batch	Rate Per Batch	Total Cost
	Variable Material	18,600	$              35.70	$       6,64,020
	Variable Labor Per Batch	18,600	$              27.75	$       5,16,150
	Variable Overhead Expenses	18,600	$              10.75	$       1,99,950
	Fixed Factory Overhead			$           30,000
	Cost of Goods Sold			$     14,10,120
	Calculation of Cost of Variable Selling and Adminstrative Expenses
		No. of Batch	Rate Per Batch	Total Cost
	Variable Selling Expenses	18,600	$                3.00	$           55,800
	Variable Administrative Expenses	18,600	$                2.50	$           46,500
	Calculation of Adminstrative Expenses
	Variable Administrative Expenses	$               46,500
	Executive Salaries	$            1,10,000
	Office Staff Salaries	$               40,000
	Office Occupancy	$               10,000
	Total	$            2,06,500
Solution: 1
	Leaf Peepers Ice Cream , inc
	Tradittional income Statement - Projected
	For the year Ended December 31, 2020
	Revenues:	Amount	Amount
	Sales Revenue (18,600 X $ 93)		$      17,29,800
	Cost of Goods Sold		$      14,10,120
	Gross Profit		$        3,19,680
	Selling Expneses ($ 40,000 + $ 55,800)		$            95,800
	Administrative Expenses		$        2,06,500
	Total Selling and administrative expenses		$        3,02,300
	Net Operating income		$            17,380
Solution: 2
	Leaf Peepers Ice Cream , inc
	Contribution income Statement - Projected
	For the year Ended December 31, 2020
	Revenues:	Amount	Amount
	Sales Revenue (18,600 X $ 93)		$      17,29,800
	Variable Cost
	Material		$        6,64,020
	Labor		$        5,16,150
	Overhead		$        1,99,950
	Selling		$            55,800
	Administrative		$            46,500
	Total Variable Cost		$      14,82,420
	Contribution Margin		$        2,47,380
	Fixed Cost
	Selling		$            40,000
	Adminstrative ($ 110,000+$40,000+$ 10,000)	$        1,60,000
	Overhead		$            30,000
	Total Fixed Cost		$        2,30,000
	Net Operating income		$            17,380