Question
12. We are back with Jerome as he contemplates retiring. He is looking over the latest financials summarized in the partially completed contribution margin income
12. We are back with Jerome as he contemplates retiring. He is looking over the latest financials summarized in the partially completed contribution margin income statements.
Required: Please find the missing values for Location 1 and Location 2.
| Location One | Location 2 | |
| Sales revenue | $500,000 | $425,000 |
| Variable expenses | 300,000 | 276,250 |
| Contribution margin | 200,000 | 148,750 |
| Fixed expenses | 125,000 | 106,250 |
| Operating income | ? | 42,500 |
| Income taxes | 15,000 | ? |
| Net income | $60,000 | $34,000 |
- In Location 1, what is the Operating Income?
- In Location 2, what is Income Taxes?
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Financial Accounting Theory
Authors: William R Scott
5th Edition
0132072866, 978-0132072861
