Answer:
Instructions are listed below
Explanation:
Giving the following information:
Q=1000
Sales= $ 315,000
Beginning merchandise inventory= $21,000
Purchases= $210,000
Ending merchandise inventory= $10,500
Fixed selling expense= $ ?
Fixed administrative expense= $12,600
Variable selling expense= $15,750
Variable administrative expense= $ ?
Contribution margin= $63,000
Net operating income= $18,900
First, we have to calculate the variable administrative expense:
Contribution margin= sales - cost of goods sold - variable selling expense - variable administrative expense
63000= 315000 - (beginning inventory + purchase - ending inventory) - 15750 - variable administrative expense
variable administrative expense= 315000 - (21000+210000-10500)-15750-63000
variable administrative expense= $15750
Now, we can calculate the fixed selling expense:
Net operating income= contribution margin - fixed selling expense - fixed administrative expense
18900= 63000 - fixed selling expense - 12600
fixed selling expense= 63000-12600-18900
fixed selling expense= 31500
A)Sales= 315,000
Variable costs:
Cost of good sold= 220,500
Variable selling expense= 15,750
Variable administrative expense= 15,750
Total variable cost= 252,000
Contribution margin=$63000
Fixed costs:
Fixed selling expense= 31,500
Fixed administrative expense= 12,600
Total fixed cost= $44,100
Net profit= $18,900
B) Revenue= 315,000
COGS= 220,500 (-)
Gross porfit= 94500
Selling expense= (15750+31500)= 47,250
Administrative expense= (15750+12600)= 28,350
EBITDA= 18,900
C) Selling price per unit= 315,000/1000= $315
D) Variable cost per unit= total variable cost/q= 252000/1000= $252
E) Contribution margin per unit= 63000/1000= $63
F) The contribution format income statement, because you can easily analyze the effect of each unit in the cost structure and net income.
