Case $3(2\mathrm{.}5$ points$)$

The relevant range for a Saudi Merchandising Company is $3,000-6000$ units. The company's revenues and expenses for the last three months are given below.

Saudi Merchandising Company

Comparative Income Statements

For the Three Months Ended June $30$

$\backslash$table$[[,$July,August,September,$],[$Sales in units,$3,000,3,750,4,500,],[$Sales revenue,SR$210,000,$SR$262,500,$SR$315,000,],[$Cost of goods sold,$84,000,105,000,126,000,],[$Gross profit,SR$126,000,$SR$157,500,$SR$189,000,],[$Selling and admin expenses,$],[$Shipping expense,SR$22,000,$SR$25,000,$SR$28,000,],[$Advertising expense,$35,000,35,000,35,000,],[$Salaries and commissions,$53,500,62,500,71,500,],[$Insurance expense,$4,500,4,500,4,500,],[$Depreciation expense,$21,000,21,000,21,000,],[$Total selling and admin expenses,SR$136,000,$SR$148,000,$SR$160,000,],[$Net operating income $($loss$),$SR$(10,000),$SR$9,500,$SR$29,000,]]$

Required

Re$-$prepare the income statement at $4,500-$unit level of activity using the contribution format $(2\mathrm{.}5$ points$)$

Answer