Question

IMPORTANT. Please show your work for this problem by handwriting any supporting calculations on your own paper and submitting it after the test is over Label your work with the question number Mets Metals is a high-end jewelry store, specializing in custom pleces last month, the company sold 1.000 pieces of jewelry at $400 a piece • The markup percentage on each plece of jewelry is 100% of cost. Hint. That means the cost is half of the sales price . The company employs a metalsmith for $5.000 each month who creates custom places and performs repairs . The company pays $15.500 each month to rent its equipment and retail space. • The company employs a salesperson who receives of the sales price of each piece sold Complete the contribution margin income statement below, prepared for one month of operations. Sales Revenue $ 400.000 $ $ $ Operating Income $

Answer 1

) Conisibukion Margin loco me Statement sales Revenue $400,000 $ 212000 O Variable costs. (1200 x to conniks) $200,000 (400,000 x 39) $12,000 conkibution Margin Fixed Costs [$5000+ $15,500) $ 180,000 & 20.500 $167.500 Operating income

2) a) Variable cost per hour to rent а a crane. = $400 $ 2800 - $ 2.400 45 - 35 vc / hour . - $40 b) Monthly fixed cost to sent а a ceane. Total costs Total variable Costs 2400 - [ 35x40] 2400 – 1400 2 $1000 c c) Monthly Cost Equation Ya $1000 + メ $40x where 2 2 Y у X Х f V 2 Total Cost No of unit. fixed costs Variable costs pee it. 2