J Bryant, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31: Sales revenue $ 750,000 Cost of goods sold 525,000 Gross margin 225,000 Operating expenses Selling expense $ 41,060 Administrative expense 68,600 109,660 Net operating income $ 115,340 Bryant sells its coats for $200.00 each. Selling expenses consist of fixed costs plus a commission of $6.00 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 6% of sales.

J Bryant, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31: Sales revenue $ 750,000 Cost of goods sold 525,000 Gross margin 225,000 Operating expenses Selling expense $ 41,060 Administrative expense 68,600 109,660 Net operating income $ 115,340 Bryant sells its coats for $200.00 each. Selling expenses consist of fixed costs plus a commission of $6.00 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 6% of sales.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 1AP

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