Question

Exercise 8-19 (Part Level Submission) Luis Herrera, an up-and-coming fashion designer, created a new line of men's fashion socis in response to the growing number of celebrities who are expressing the individualty by replacing traditional navy and black socks with brighter colors and bold patterns. At a sales price of $10.20 per por Luis estimates monthly sales volumewe 21,100 pairs. Varate product costs will be $6.75 per past and red overhead we be $1.70 per pa r t of the found overhead is directly traceable to the new socline to promote the socks, Herrera proposes a 10.60 per per commission to the company's salespeople and a $10,650 per month advertising campaign. In compliance with corporate policy, the socks w ise be located $23.700 fed corporate support costs. Prepare a traditional monthly income statement for the proposed sockline Enter negative amounts using either a negative sin preceding the number ... -15 or parentheses e.. (45).) Luis Herrera Monthly Income Statement Click if you would like to show Work for this questioni Open Show Work

Answer 1

Monthly income statement
sale revenue (10.20*21100)		215220
cost of goods sold:
variable (6.75*21100)	142425
fixed (1.70*21100)	35870	178295
Gross margin		36925
operating expenses:
commission (0.60*21100)	12660
advertising	10650
corporate support	23700	47010
Operating income/loss		-10085