Question
Columbia Inc. has provided the following for three months of income statements: January February March Sales in Units 3,000 3,500 4,000 Sales 900,000 1,050,000 1,200,000
Columbia Inc. has provided the following for three months of income statements:
|
| January | February | March |
| Sales in Units | 3,000 | 3,500 | 4,000 |
| Sales | 900,000 | 1,050,000 | 1,200,000 |
| Less: cost of goods sold | 540,000 | 630,000 | 720,000 |
| Gross margin | 360,000 | 420,000 | 480,000 |
| Operating expenses: |
|
|
|
| Advertising | 25,000 | 25,000 | 25,000 |
| Salaries & Commissions | 175,000 | 197,500 | 220,000 |
| Depreciation expense | 25,000 | 25,000 | 25,000 |
| Utilities expense | 75,000 | 87,000 | 99,000 |
| Total operating expenses | 300,000 | 334,500 | 369,000 |
| Net Income | 60,000 | 85,500 | 111,000 |
Assume the company plans to sell 3,200 units next month, prepare a contribution margin income statement.
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Financial Accounting
Authors: Strayer University
1st Edition
0470603526, 978-0470603529
