Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Below is the income statement for Robinson Company, a merchandising firm. If you take this information and prepare a contribution margin income statement, what

 

Below is the income statement for Robinson Company, a merchandising firm. If you take this information and prepare a contribution margin income statement, what will the variable costs be the contribution margin be and the fixed costs be to arrive at net income of $12,000? Hint: All information will be used. Sort your costs by variable and fixed. Then, follow the contribution margin income statement. Do not use a $. Do use a comma. Do use a parenthesis () around amounts to show where deducted. For example, (10,000) Robinson Company Income Statement For the Year Ended December 31, 2019 Sales revenue (2,400 units x $100) $240,000 Cost of goods sold (2,400 units x $65) (156,000) Gross margin 84,000 Sales commissions (10% of sales) (24,000) Administrative salaries expense (15,000) Advertising expense (20,000) Depreciation expense (10,600) Shipping and handling expenses (2,400 units x $1.00) (2,400) Net Income $ 12,000

Step by Step Solution

3.34 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

Stademaut Tuoticulr 240000 Soles a400 umith X 100 E vosei able cotd ast op Good sal 15600... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting IFRS

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

3rd edition

1119372933, 978-1119372936

More Books

Students also viewed these Accounting questions