Question

Current Attempt in Progress Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) $ 66,000 Less cost of goods sold ($56 per unit) 36,960 Gross margin 29,040 Less operating costs: Commissions expense ($6 per unit) $ 3,960 Salaries expense 7,900 Advertising expense 5,800 Shipping expense ($3 per unit) 1,980 19,640 Operating income $ 9,400

Answer 1

Answer:

Contribution Margin Income Statement for the year end MM DD, YY

                                                                      $                $

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)                1,980  

                                                                                     42,900

Contribution Margin                                                    23,100

Less: Fixed Cost

Salaries expense                                        7,900

Advertising expense                                  5,800  

                                                                                     13,700

Net Income                                                                  9,400