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2. The following data have been taken from the accounting records of YZ Company for the month ending 30th September 2020 Sales Cost of goods
2. The following data have been taken from the accounting records of YZ Company for the month ending 30th September 2020 Sales Cost of goods sold Sales commission Administrative expenses (2/3 variable and 1/3 fixed) Depreciation of office equipments Executive salaries: 50% fluctuates with sales and the rest is fixed. Insurance expense Clerical costs Delivery expense Utilities expense (30% variable and 70% fixed) Miscellaneous expenses Selling price per unit $800,000 $ 200,000 ($1000 per month plus 5% of sales) $30000 $200 per month $ 12000 $300 per month $1000 per month plus $20 per unit sold $20 per unit sold $5500 $500 per month plus 1% of sales $500 Instructions: 1. Using the information provided above prepare an income statement for the month of September using the Traditional Format where costs are organized by function. 2. Prepare an income statement for the month of September using the Contribution Format where costs are organized by behavior
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