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Author Question: Restate the following income statement for a merchandising company in contribution format.Sales ($20 ... (Read 16 times)

kckanistras

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Question 1

Restate the following income statement for a merchandising company in contribution format.

Sales ($10 per unit)$5,000
Less cost of goods sold ($6 per unit) 3,000
Gross margin2,000
Less operating expenses
  Commissions ($0.60 per unit)$300
  Salaries  800 1,100
Operating Income$  900


Question 2

Restate the following income statement for a merchandising company in contribution format.

Sales ($20 per unit)$20,000
Less cost of goods sold ($6 per unit) 6,000
Gross margin14,000
Less operating expenses
  Shipping charges ($2 per unit)$2,000
  Salaries3,000
  Utilities 4,000 9,000
Operating Income$ 5,000


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Marked as best answer by kckanistras on Feb 5, 2023

Mynameisrandom

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kckanistras

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Reply 2 on: Feb 5, 2023
YES! Correct, THANKS for helping me on my review


sultana.d

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Reply 3 on: Yesterday
Excellent

 

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