Coronado, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31: Sales revenue $ 751,000 Cost of goods sold 585,780 Gross margin 165,220 Operating expenses Selling expense $ 24,430 Administrative expense 50,650 75,080 Net operating income $ 90,140
Coronado, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31: Sales revenue $ 751,000 Cost of goods sold 585,780 Gross margin 165,220 Operating expenses Selling expense $ 24,430 Administrative expense 50,650 75,080 Net operating income $ 90,140
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 3MAD: The general merchandise retail industry has a number of segments represented by the following...
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J Coronado, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31:
Coronado sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.
Sales revenue
|
$ | 751,000 | |||||
Cost of goods sold
|
|
585,780 | |||||
Gross margin
|
165,220 | ||||||
Operating expenses
|
|||||||
Selling expense
|
$ | 24,430 | |||||
Administrative expense
|
|
50,650 |
|
75,080 | |||
Net operating income
|
$ | 90,140 |
Coronado sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.
(a)
Prepare a contribution format income statement for January. (Round per unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)
Per Unit
|
|||||
---|---|---|---|---|---|
select an income statement item
|
$enter a dollar amount | $enter a dollar amount | |||
select an opening name for section one :
|
|||||
select an income statement item
|
enter a dollar amount | enter a dollar amount | |||
select an income statement item
|
enter a dollar amount | enter a dollar amount | |||
select an income statement item
|
enter a dollar amount | $enter a dollar amount | |||
select a closing name for section one
|
enter a total amount for section one | enter a total amount per unit for section one | |||
select a summarizing line for the first part
|
enter a total amount for the first part | $enter a total amount per unit for the first part | |||
select an opening name for section two :
|
|||||
select an income statement item
|
enter a dollar amount | ||||
select an income statement item
|
enter a dollar amount | ||||
select a closing name for section two
|
enter a total amount for section two | ||||
select a closing name for this statement
|
$enter a total amount for this statement |
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