Answer:
Instructions are listed below
Explanation:
Giving the following information:
Q=1000
Sales= $ 300,000
Beginning merchandise inventory= $20,000
Purchases= $200,000
Ending merchandise inventory= $7,000
Fixed selling expense= $ ?
Fixed administrative expense= $12,000
Variable selling expense= $15,000
Variable administrative expense= $ ?
Contribution margin= $60,000
Net operating income= $18,000
First, we have to calculate the variable administrative expense:
Contribution margin= sales - cost of goods sold - variable selling expense - variable administrative expense
60000= 300000 - (beginning inventory + purchase - ending inventory) - 15000 - variable administrative expense
variable administrative expense= 300000 - (20000+200000-7000)-15000-60000
variable administrative expense= $12000
Now, we can calculate the fixed selling expense:
Net operating income= contribution margin - fixed selling expense - fixed administrative expense
18000= 60000 - fixed selling expense - 12000
fixed selling expense= 60000-12000-18000
fixed selling expense= 30000
A)Sales= 300,000
Variable costs:
Cost of good sold= 213,000
Variable selling expense= 15,000
Variable administrative expense= 12,000
Total variable cost= 240,000
Contribution margin=$60,000
Fixed costs:
Fixed selling expense= 30,000
Fixed administrative expense= 12,000
Total fixed cost= $42,000
Net profit= $18,000
B) Revenue= 300,000
COGS= 213,000 (-)
Gross porfit= 87000
Selling expense= (30000+15000)= 45,000
Administrative expense= (12000+12000)= 24,000
EBITDA= 18,000
C) Selling price per unit= 300,000/1000= $300
D) Variable cost per unit= total variable cost/q= 240000/1000= $240
E) Contribution margin per unit= 60000/1000= $60
F) The contribution format income statement, because you can easily analyze the effect of each unit in the cost structure and net income.
