Exercise 2-11 Traditional and Contribution Format Income Statements [LO5]

Haaki Shop, Inc., is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:

		Amount
Total sales revenue	$	1,032,000
Selling price per surfboard	$	430
Variable selling expense per surfboard	$	48
Variable administrative expense per surfboard	$	15
Total fixed selling expense	$	150,000
Total fixed administrative expense	$	125,000
Merchandise inventory, beginning balance	$	75,000
Merchandise inventory, ending balance	$	105,000
Merchandise purchases	$	315,000

Required:
1.	Prepare a traditional income statement for the quarter ended May 31. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Haaki Shop, Inc. Traditional Income Statement
(Click to select)Merchandise inventory, beginning balanceCost of goods soldSalesMerchandise purchasesMerchandise inventory, ending balance		$
(Click to select)Merchandise purchasesSalesMerchandise inventory, ending balanceCost of goods soldMerchandise inventory, beginning balance
(Click to select)Net operating incomeGross marginContribution marginNet operating loss
Selling and administrative expenses:
(Click to select)Selling expensesAdministrative expensesMerchandise purchasesSalesCost of goods sold
(Click to select)Administrative expensesSelling expensesCost of goods soldMerchandise purchasesSales
(Click to select)Net operating lossGross marginContribution marginNet operating income		$

2.	Prepare a contribution format income statement for the quarter ended May 31. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Haaki Shop, Inc. Contribution Format Income Statement
(Click to select)InsuranceAdministrative expensesCost of goods soldSalesSelling expenses		$
Variable expenses:
(Click to select)SalesCost of goods soldInsuranceAdministrative expensesSelling expenses	$
(Click to select)InsuranceSelling expensesSalesCost of goods soldAdministrative expenses
(Click to select)InsuranceAdministrative expensesSelling expensesCost of goods soldSales
(Click to select)Net operating incomeContribution marginGross marginNet operating loss
Fixed expenses:
(Click to select)InsuranceAdministrative expensesSelling expensesSalesCost of goods sold
(Click to select)InsuranceCost of goods soldSalesSelling expensesAdministrative expenses
(Click to select)Gross marginNet operating lossContribution marginNet operating income		$

3.	What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter? (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

Contribution of each surfboard was

$