Hey It won't show me the image.
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Answer:
option (D) $138,000
Explanation:
Data provided in the question:
Purchasing cost of the machine = $126,000
Additional costs for this machine :
Shipping = $3,000
Installation = $4,000
Testing = $5,000
Now,
The cost of machine that should be reported
= Purchasing cost + Additional costs incurred
= $126,000 + $3,000 + $4,000 + $5,000
= $138,000
Hence,
The correct answer is option (D) $138,000
Answer:
<u>Contribution Margin Income Statement for the year end MM DD, YY</u>
$ $
Sales revenue ($100 per unit) 66,000
Less: Variable Cost
Less cost of goods sold ($56 per unit) 36,960
Commissions expense ($6 per unit) 3,960
Shipping expense ($3 per unit) <u> 1,980 </u>
<u> 42,900 </u>
Contribution Margin 23,100
Less: Fixed Cost
Salaries expense 7,900
Advertising expense <u> 5,800 </u>
<u> 13,700 </u>
Net Income <u> 9,400</u>
