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sexy_sassy25
Jan 29, 2008, 07:51 AM
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
Feb 2, 2008, 11:37 AM
Suggest reading: Contribution margin - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Contribution_margin)