The Robinson Company sells sports decals that can be personalized with a player's name, team name, and jersey number for $5.50 each. Robinson buys the decals from a supplier for $1.40 each and spends an additional $0.50 in variable operating costs per decal. The results of last month's operations are as follows: Sales revenue Cost of goods sold Gross profit Operating costs Operating income $15,510 3,948 11,562 2,887 $ 8,675 Prepare a contribution format Income statement for the Robinson Company. (Round per unit values to 2 decimal places, e.g. 52.75 & final answers to 0 decimal places, 5,725.)

The Robinson Company sells sports decals that can be personalized with a player's name, team name, and jersey number for $5.50 each. Robinson buys the decals from a supplier for $1.40 each and spends an additional $0.50 in variable operating costs per decal. The results of last month's operations are as follows: Sales revenue Cost of goods sold Gross profit Operating costs Operating income $15,510 3,948 11,562 2,887 $ 8,675 Prepare a contribution format Income statement for the Robinson Company. (Round per unit values to 2 decimal places, e.g. 52.75 & final answers to 0 decimal places, 5,725.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)
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Use the following information for Brief Exercise: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers and sold 8,000 coffee makers during the month of March at a total cost of 612,500. Each coffee maker sold at a price of 100. Morning Smiles also incurred two types of selling costs: commissions equal to 5% of the sales price and other selling expense of 45,000. Administrative expense totaled 47,500. 2-33 Income Statement Percentages Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one decimal place.)
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Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,481 per unit and then sells them to retail customers for an average price of $3,200 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $965 per month Sales salaries and commissions $4,808 per month, plus 4% of sales Delivery of pianos to customers $58 per piano sold Utilities $636 per month Depreciation of sales facilities $4,979 per month Administrative: Executive salaries $13,481 per month Insurance $709 per month Clerical $2,529 per month, plus $44 per piano sold Depreciation of office equipment $932 per month During August, Marwick’s Pianos, Incorporated, sold and delivered 62 pianos. Required: 1. Prepare a traditional format income statement for August.2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a…