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1-b. Prepare contribution format income statements for May.

1-b. Prepare contribution format income statements for May.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
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1-b. Prepare contribution format income statements for May.

 

Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $100, and the Deluxe set sells for $115. The variable expenses associated with each set are given below. Variable production costs Sales commissions (35% of sales price) The company's fixed expenses each month are: Advertising Depreciation Administrative $ 125,000 $ 27,700 $ 73,000 April May Standard $35.00 $35.00 Mary Parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the last year. For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-are down substantially from April. Sales, in sets, for the last two months are given below: Standard De luxe Total 6,000 4,000 10,000 3,000 7,000 10,000 Deluxe $50.00 $ 40.25
Transcribed Image Text:Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $100, and the Deluxe set sells for $115. The variable expenses associated with each set are given below. Variable production costs Sales commissions (35% of sales price) The company's fixed expenses each month are: Advertising Depreciation Administrative $ 125,000 $ 27,700 $ 73,000 April May Standard $35.00 $35.00 Mary Parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the last year. For this reason, she was shocked to find that even though sales have increased, profits for the current month-May-are down substantially from April. Sales, in sets, for the last two months are given below: Standard De luxe Total 6,000 4,000 10,000 3,000 7,000 10,000 Deluxe $50.00 $ 40.25
Complete this question by entering your answers in the tabs below. Req 1A Variable expenses: Req 1B Prepare contribution format income statements for April. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Total variable expenses Fixed expenses: Req 3A Total fixed expenses Amount $ Carbex, Inc. Income Statement For April Standard Req 3B 0 0 % % % % % % 0.0 % 0.0 % Deluxe Amount $ P 0 0 % % Amount % % % % 0.0 % 0.0 % $ $ Total 0 0 0 0 % % % % % % 0.0 % 0.0 %
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req 1A Variable expenses: Req 1B Prepare contribution format income statements for April. (Round your "Percentage" answers to 1 decimal place (i.e. .1234 should be entered as 12.3).) Total variable expenses Fixed expenses: Req 3A Total fixed expenses Amount $ Carbex, Inc. Income Statement For April Standard Req 3B 0 0 % % % % % % 0.0 % 0.0 % Deluxe Amount $ P 0 0 % % Amount % % % % 0.0 % 0.0 % $ $ Total 0 0 0 0 % % % % % % 0.0 % 0.0 %
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