Last month Seafood Grill had total sales of ($200,000.) Food preparation and service costs totaled ($90,000) (20%

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Last month Seafood Grill had total sales of $$200,000.$ Food preparation and service costs totaled $$90,000$ (20% fixed, 80% variable). Selling and administrative costs totaled $$30,000$ (70% fixed, 30% variable).

Required

a. Prepare a traditional income statement for Seafood Grill.

b. Prepare a contribution margin income statement for Seafood Grill.

c. Why do companies use the contribution margin income statement format?

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Essentials Of Managerial Accounting

ISBN: 9780618436699

1st Edition

Authors: Kurt Heisinger

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Question Posted: May 29, 2024 08:01 AM

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Last month Seafood Grill had total sales of ($200,000.) Food preparation and service costs totaled ($90,000) (20%

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Essentials Of Managerial Accounting

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