Chat with us, powered by LiveChat Prepare a contribution format income statement for January. | WriteMoh

### Problem 2-25

J Concord, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31:

 Sales revenue \$ 763,000 Cost of goods sold 345,500 Gross margin 417,500 Operating expenses Selling expense \$ 24,260 Administrative expense 50,560 74,820 Net operating income \$ 342,680

Concord sells its coats for \$250 each. Selling expenses consist of fixed costs plus a commission of \$6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.

Prepare a contribution format income statement for January. (Round per unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

Using the format y = mx + b, develop a cost formula for total expenses. (Round unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

 Operating expenses = \$x + \$

If 3,000 coats are sold next month, what is the expected total contribution margin? (Round answer to 0 decimal places, e.g. 5,275.)

 Contribution margin \$
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