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Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold 6,800 Selling price per unit $ 610 Unit cost of
Fanelli Corporation, a merchandising company, reported the following results for July:
Number of units sold | 6,800 | |
Selling price per unit | $ | 610 |
Unit cost of goods sold | $ | 420 |
Variable selling expense per unit | $ | 64 |
Total fixed selling expense | $ | 126,300 |
Variable administrative expense per unit | $ | 32 |
Total fixed administrative expense | $ | 208,200 |
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.
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