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Contribution format income statement

Asked Jan 29, 2008, 06:51 AM — 1 Answer
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 adminstrative 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

1 Answer
MaggieMouse's Avatar
MaggieMouse Posts: 226, Reputation: 43
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#2

Feb 2, 2008, 10:37 AM
Suggest reading: Contribution margin - Wikipedia, the free encyclopedia
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