Fanelli Corporation, a merchandising company, reported the following results for July:

Number of units sold		6,400
Selling price per unit	$	600
Unit cost of goods sold	$	416
Variable selling expense per unit	$	56
Total fixed selling expense	$	125,900
Variable administrative expense per unit	$	24
Total fixed administrative expense	$	207,800

Cost of goods sold is a variable cost in this company.

Required:

a. Prepare a traditional format income statement for July.

b. Prepare a contribution format income statement for July.

Required A Required B traditional format income statement for July Prepare Fanelli Corporation For the month of July Traditional Income Statement Sales 3,840,000 Cost of goods sold Gross margin 2,662,400 1,177,600 Selling and administrative expenses: 358,400 Selling expense Administrative expense 153,600 Manufacturing overhead 125,900 Accounts payable 207,800 845,700 Net operating income 331,900 Required A Required B Required A Required B Prepare a contribution format income statement for July. Fanelli Corporation For the month of July Contribution Format Income Statement Sales 3,840,000 Variable expenses: S 2,662,400 Cost of goods sold Selling expense 358,400 Administrative expense 153,600 3,174,400 665,600 Fixed expenses: Selling expense 125,900 207,800 333,700 S 331,900 Required A Required B