Mary’s Ice Cream Shoppe sold 9,100 servings of ice cream during June for $4 per serving. Mary purchases the ice cream in large tubs from the Organic Ice Cream Company. Each tub costs Mary $14 and has enough ice cream to fill 28 ice cream cones. Mary purchases the ice cream cones for $0.20 each from a local warehouse club. Mary’s Shoppe is located in a local strip mall, and she pays $2,050 a month to lease the space. Mary expenses $210 a month for the depreciation of the Shoppe’s furniture and equipment. During June, Mary incurred an additional $2,000 of other operating expenses (75% of these were fixed costs).
Requirements:
1. Prepare Mary’s June income statement using a traditional format.
2. Prepare Mary’s June income statement using a contribution margin format.