1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Inessa [10]
3 years ago
9

Sally's Gift Baskets sells gift baskets, on average, for $125; each gift basket costs, on average, $60. Debby pays salaries each

month of $1, 300 and her store rent is $1,000 per month. She also pays sales commissions of 5% of the sales price. In May, 140 gift baskets were sold.
a. Prepare a traditional income statement for the month of May.
b. Prepare a contribution margin income statement for the month of May.
Business
1 answer:
eimsori [14]3 years ago
5 0

Answer:

a. Traditional Income Statement

Sales ($125 x 140)                            $17,500

Cost of Sales ($60 x 140)               <u>($8,400)</u>

Gross Profit                                      $9,100

Salaries                                           ($1,300)

Rent                                                 ($1,000)

Sales Commission ($17,500 x 5%) <u>($875) </u>

Net income                                      <u>$5,925</u>

b. Contribution Margin Income Statement

Sales ($125 x 140)                            $17,500

Less: variable Costs

Cost of Sales ($60 x 140)               ($8,400)

Sales Commission ($17,500 x 5%) <u>($875) </u>

Contribution Margin                       $8,225

Less: Fixed Costs

Salaries                                           ($1,300)

Rent                                                 <u>($1,000)</u>

Net income                                      <u>$5,925</u>

Explanation:

a.

Traditional Income statement calculates the gross profit after deducting the cost of goods sold from the revenue. After that it deduct all the operating expenses to calculate the Net Income.

b.

Contribution margin income statement consider all the variable expenses as cost of product cost and calculates the contribution margin, after that the fixed costs are deducted calculate the net income.

You might be interested in
is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goo
Elan Coil [88]

A countertrade is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services.

Barter transactions can be among non-public events, among a non-public party and a sovereign state,' or between sovereign international locations." The countertrade transaction includes a parallel set of duties in which the parties ever undertake to sell items or era to the other in separate however related transactions.

The not unusual function of counter-change preparations is that export income to a particular market is made conditional upon undertakings to simply accept imports from that marketplace. for instance, an exporter can also promote machinery to USA X in a situation where he accepts agricultural merchandise from X for a fee.

A countertrade approach targets temporary corrections in a trending security fee motion to profit. The method involves buying/promoting security that has skilled an impulsive bearish/bullish flow within the hopes that a corrective move higher/decrease will permit them to sell/buy it back at that better/lower fee.

Learn more about countertrade here brainly.com/question/20164312

#SPJ4

8 0
1 year ago
It is important to shop around for credit because banks and financial institutions?
Nat2105 [25]
Number 2 charge different fees
3 0
3 years ago
Read 2 more answers
Suppose the market for this product is served by two firms who have formed a cartel and are colluding to set the price and quant
kondaur [170]

Answer:

the answer is B

Explanation:

because there are less things in the number and if this dos not help you I am sorry I am not good at math

3 0
3 years ago
a While troubleshooting a problem, you realize the problem is caused by a complex series of issues that will affect a large numb
Jet001 [13]

The next step to undertake in the troubleshooting process is:

  • To document the incident

<h3>What is Troubleshooting?</h3>

This refers to the various ways through which a person assesses a problem and eliminates them.

In the troubleshooting process, we can see that there are various processes which includes: Information gathering, analysis, implementation, etc.

However, as the problem is caused by complex issues, it is best to document the incident so that it can be more carefully analysed.

Read more about troubleshooting here:
brainly.com/question/25953942

8 0
3 years ago
John has been working as a tutor for $300 a semester. When the university raises the price it pays tutors to $400, Jasmine enter
Elza [17]

Answer:

b. between $100 and $200

Explanation:

Producer surplus: The producer surplus is a difference between the willing price declared by the producers and the price the producers receives for supplying the goods and services.

In mathematically,

Producer surplus = Willing price - Receiving price

                            = $400 - $300

                            = $100

4 0
3 years ago
Other questions:
  • Business-________ marketing is the marketing of products and services to companies, governments, or not-for-profit organizations
    11·1 answer
  • In the early days of computers, programmers and designers started businesses in their parents’ garages and worked there until th
    10·1 answer
  • A.J. is the vice president for Keane Products, a marketing consulting firm. On a business trip to New York City in 2019, he meet
    7·1 answer
  • Classify the following item as belonging in the revenue, expenditure, human resources/payroll, production, or financing cycle:
    12·1 answer
  • g The budgeted production of​ Capricorn, Inc. is 15 comma 000 units per month. Each unit requires 30 minutes of direct labor to
    8·1 answer
  • The price elasticity of a good will tend to be larger:
    14·1 answer
  • 1. What is public relations? Give an example of a public relations activity.
    7·1 answer
  • What do u want to be when u grow up
    9·2 answers
  • The First Bank of the United States had characteristics that differ from those of the modern central bank of the United States.
    10·1 answer
  • a $104,000 selling price with $24,000 down at 6.5% for 25 years results in a monthly payment of: multiple choice $545.61 $554.71
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!