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    sexy_sassy25's Avatar
    sexy_sassy25 Posts: 1, Reputation: 1
    New Member
     
    #1

    Jan 29, 2008, 07:51 AM
    contribution format income statement
    how do I prepare an income statement for haaki shop.

    sales... $800,000
    cost of goods sold.. 300,000

    Gross margin... 500,000
    selling and administrative expenses
    selling expense $250,000
    administrative expense 160,000 410,000
    net operating income 90,000

    the surfboards sell, on the average, for $400 each. The department's variable selling expenses are $50 per surfboard sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its surfboards from a supplier at a cost of $150 per surfboard.

    please help me. I am stuck
    MaggieMouse's Avatar
    MaggieMouse Posts: 226, Reputation: 8
    Full Member
     
    #2

    Feb 2, 2008, 11:37 AM
    Suggest reading: Contribution margin - Wikipedia, the free encyclopedia

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