Question

Pb-b4A (similar to) The Old Fashioned Ice Cream Shoppe sold 9,000 servings of ice cream during Ane for $2 per serving. The shop purchases the ice cream in large bubs from the Golden Ice Cream Company. Each boosts the shop $18 and has enough ice cream to 40 ice cream cones. The shop purchases the low cream cones for $0.25 each from a local warehouse club. Located in an outdoor mall, the rent for the shop space is $1,700 per month. The shop expenses $250 a month for the depreciation of the shop's furniture and equipment During June, the shop incurred an additional $2.400 of other operating expenses (75% of these were feed costs) Requirements 1. Prepare The Old Fashioned Ice Cream Shoppe's June Income statement using a traditional format 2. Prepare The Old Fashioned Ice Cream Shoppe's June income statement using a contribution margin format Requirement 1. Prepare The Old Fashioned Ice Cream Shoppe's June Income statement using a traditional format The Old Fashioned Ice Cream Shoppe Income Statement For the Month Ended June 30 Cost of goods sold Depreciation expense Gross profit Lease expense Operating expenses Operating income Other Operating expenses Other Operating income Sales revenue Total operating expenses

Answer 1

1)

The Old Fashioned Ice Cream Shoppe
Income Statement
For the Month Ended June 30
Sales revenue (9000*$2)	$18000
Less: Cost of goods sold (9000*$0.25+9000/40*$18)	6300
Gross profit	11700
Less: Operating expenses
Depreciation expense	250
Lease expense	1750
Other operating expense	2400
Operating income	$7300

2)

The Old Fashioned Ice Cream Shoppe
Income Statement
For the Month Ended June 30
Sales revenue (9000*$2)	$18000
Less: Variable cost
Variable cost of goods sold (9000*$0.25+9000/40*$18)	6300
Other operating expenses (2400*25%)	600
Contribution margin	11100
Less: Operating expenses
Depreciation expense	250
Lease expense	1750
Other operating expense (2400*75%)	1800
Operating income	$7300