For internal planning and decision-making purposes, the owner of Wonderful Pets would like to translate the company's income statement into the contribution margin format. Since Wonderful Pets is an e-tailer, all of its cost of goods sold was variable. A large portion of the selling and marketing expenses consisted of freight-out charges ($23,500), 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. Based on this information, prepare Wonderful Pets's contribution margin income statement for last year, Data Table Prepare the Wonderful Pets contribution margin income statement for last year. Wonderful Pets Contribution Margin Income Statement For the Year Ended December 31 Wonderful Pets Income Statement Year Ended December 31 Sales revenue 999000 Sales revenue $ 999,000 (670,000) 670000 Variable expenses: Cost of goods sold Variable selling and marketing expenses Variable website maintenance expenses 329,000 12500 14875 $ 62,500 Other variable operating expenses 15300 Cost of goods sold Gross profit Operating expenses: Selling and marketing expenses Website maintenance expenses Other operating expenses Total operating expenses Operating income 59,500 17,000 Choose from any list or enter any number in the input fields and then click Check Answer. ? (139,000) All parts showing Clear A $ 190,000 Print Done Wonderful Pets is a small e-tail business specializing in the sale of exotic pet gifts and accessories over the web. The business is owned by a sole proprietor and operated out of her home. Results for last year are as follows: (Click the icon to view the results.) For internal planning and decision-making purposes, the owner of Wonderful Pets would like to translate the company's income statement into the contribution margin format. Since Wonderful Pets is an e-tailer, all of its cost of goods sold was variable. A large portion of the selling and marketing expenses consisted of freight-out charges ($23,500), 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. Based on this information, prepare Wonderful Pets's contribution margin income statement for last year. Variable website maintenance expenses 14875 Other variable operating expenses 15300 Total variable expenses 712675 Contribution margin 286325 Fixed expenses: Fixed selling and marketing expenses Fixed website maintenance expenses 500000 44625 Other fixed operating expenses 1700 Total fixed expenses 546325 Operating income 260000 Choose from any list or enter any number in the input fields and then click Check Answer. ? All parts showing Clear All Check
