Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

J Coronado, Ltd. is a local coat retailer. The stores accountant prepared the following income statement for the month ended January 31: Sales revenue $

J Coronado, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31:

Sales revenue$759,000
Cost of goods sold

313,500
Gross margin445,500
Operating expenses
Selling expense$23,770
Administrative expense

50,710

74,480
Net operating income$371,020


Coronado sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.

Prepare a contribution format income statement for January. (Round per unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

sing the format y = mx + b, develop a cost formula for total expenses. (Round unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

Operating expenses =

If 3,300 coats are sold next month, what is the expected total contribution margin? (Round answer to 0 decimal places, e.g. 5,275.)

Contribution margin=

Step by Step Solution

3.44 Rating (141 Votes )

There are 3 Steps involved in it

Step: 1

A B 1 Number of units sold 759000250 3036 2 Particula... 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

Using Financial Accounting Information The Alternative to Debits and Credits

Authors: Gary A. Porter, Curtis L. Norton

7th Edition

978-0-538-4527, 0-538-45274-9, 978-1133161646

More Books

Students also viewed these Accounting questions

Question

=+b) Is MediaChips manufacturing process in control?

Answered: 1 week ago