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1 June, 06:24

Restate the following income statement for a retailer in contribution format. Sales revenue ($100 per unit) $ 98,000 Less cost of goods sold ($58 per unit) 56,840 Gross margin 41,160 Less operating costs: Commissions expense ($5 per unit) $ 4,900 Salaries expense 7,900 Advertising expense 5,800 Shipping expense ($3 per unit) 2,940 21,540 Operating income $ 19,620

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  1. 1 June, 06:51
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    Contribution Margin Statement

    Sales revenue ($100 x 980) $98,000

    Less Variable costs:

    cost of goods sold ($58 x 980) $56,840

    Commissions expense ($5 x 980) $4,900

    Shipping expense ($3 x 980) $2,940

    $64,680

    Gross margin $33,320

    Less Fixed costs:

    Salaries expense $7,900

    Advertising expense $5,800

    $13,700

    Net Profit $19,620
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