Cost Behalior ! Prepare a contribution margin income statement Five Macaws is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location. Results for last year are shown next: Five Macaws Traditional Income Statement (Absorption Costing) For the Year Ended December 31 C (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked 1 wrong.) 2 3 4 Five Macaws Contribution Margin Income Statement For the Year Ended December 31 D $ Sales revenue Less: Cost of goods sold 990,000 673,000 6 Sales revenue 7 Less: Variable expenses 2 Gross profit $ 317,000 8 Variable cost of goods sold 3 Less operating expenses: 9 Variable selling and marketing expenses 4 Selling and marketing expenses $ 65,500 10 Variable web site maintenance expenses 5 58,000 17,600 141,100 11 Other variable operating expenses 6 175,900 7 8 Fixed selling and marketing expenses Fixed web site maintenances expenses 16 Other fixed operating expenses Website maintenance expenses Other operating expenses Operating income For internal planning and decision-making purposes, the owner of Five Macaws would like to translate the company's income statement into the contribution margin format. Since Five Macaws is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight-out charges ($19,400), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable. Of the other operating expenses, 90% were fixed. 1 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the 2 Instructions tab or if you type the numbers in, you will be marked wrong. 3 4 Requirements 5 Prepare Five Macaws' contribution margin income statement for last year. a. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. Follow the format shown in Exhibit 6-22. 9 Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS 2 Upload and submit your file to be graded. Navigate back to the activity window-screen where you downloaded the initial spreadsheet Click Choose button under step 3; locate the file you just saved and click Open 1 2 3 a. 4 b. 5 C Click Upload button under step 3 d. Click Submit button under step 4 8 Viewing Results 12 Contribution margin 13 Less: Fixed expenses 14 15 17 Operating income 18 19 1 Click on Results tab in MyAccountingLab 0 2 Click on the Assignment you were working on 1 3 Click on Project link; this will bring up your Score Summary 4 Within Score Summary window, click on Download (upper right) to download the spreadsheet with feedback