1. Shown below is an income statement in the traditional formatfor Ellie Inc, which has a contribution margin ratio of 25%.Sales ......Cost of goods sold...Gross profit......Operating expenses:Selling...Administrative....Operating income$100,000(70,000)$ 30,000(5,000)(10,000)$ 15,000Prepare an income statement in the contribution marginformat.b. Calculate the sales per unit, variable expense per unit, andcontribution margin per unit if 10,000 units were producedand sold.c. Calculate the cost formula (Y=a+bX).d. Calculate the firm's break even point in units.

The contribution margin is calculated as the difference between the sales and variable costs. The…

Answered: 1. Shown below is an income statement…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...

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Prepare a contribution margin format income statement; answer what-ifquestions Shown here is an income statement in the traditional format for a firm with a sales volume of 15,000 units:Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $105,000Cost of goods sold ($8,000 1 $3.60/unit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62,000Gross profi t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 43,000Operating expenses:Selling ($1,500 1 $0.80/unit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,500Administration ($4,000 1 $0.50/unit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,500Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,000Required:a. Prepare an income statement in the contribution margin format.b. Calculate the…
Given the following information: Revenue from Operations 3,40,000 Cost of Revenue from Operations 1,20,000 Selling expenses 80,000 Administrative Expenses 40,000 Calculate Gross profit ratio and Operating ratio.
A company’s contribution approach income statement showed net operating incomeof $4,000, and fixed expenses of $10,000. How much contribution margin did thecompany earn?a. $29,000b. $15,000c. $19,000d. $14,000
B. Considering the following information, please prepare income statements using both traditional and contribution formats Items Amount (Tk.) Sales 7,50,000.00 Direct materials 2,47,000.00 Direct wages 87,000.00 Salary 36,000.00 Factory Rent 40,000.00 Electricity 12,600.00 Depreciation 28,000.00 Insurance 22,000.00 Utilities 27,000.00 Conveyance 24,000.00
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Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 300,000 $ Sales Beginning merchandise inventory 20,000 $ 200,000 $ $ $ Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 7,000 ? 12,000 $ 15,000 $ 60,000 $ 18,000 Required: 1. Prepare a contribution format income statement.
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 10.- The company El Invierno, S.A., presents the following information for you to calculate its accounting and cash profit: Total Sales................................. $ 1'345,670.20 Cost of Sales.............................. $ 702,875.95 Operating Expenses: Wages and salaries.......... $149,516.40 Rent................................. 69,250.50 Commissions.................... 320,000.00 Depreciation.............. 114,129.32 $ 652,896.22 Sales, purchases and expenses were made in cash. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
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Calculate the gross and net profits (in $) and the two profit margins (as %s) for the given company. (Round profit margins to the nearest tenth of a percent.) Company Net Sales Cost ofGoods Sold GrossProfit OperatingExpenses Net Profit Gross ProfitMargin (%) Net ProfitMargin (%) an optometry store $327,735 $201,655 $ $83,921 $ % %
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