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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
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 | $ | 1,089,000 |
Selling price per surfboard | $ | 330 |
Variable selling expense per surfboard | $ | 40 |
Variable administrative expense per surfboard | $ | 10 |
Total fixed selling expense | $ | 250,000 |
Total fixed administrative expense | $ | 220,000 |
Merchandise inventory, beginning balance | $ | 93,000 |
Merchandise inventory, ending balance | $ | 113,000 |
Merchandise purchases | $ | 350,000 |
1. Prepare a traditional income statement for the quarter ended May 31. HAAKI SHOP, INC. Traditional Income Statement Quarter Ended May 31 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses $ 382,000 Administrative expenses 253,000 Operating income $ 1,089,000 223,000 866,000 635,000 $ 231,000 2. Prepare a contribution format income statement for the quarter ended May 31. $ 1,089,000 HAAKI SHOP, INC. Contribution Format Income Statement Quarter Ended May 31 Sales Variable expenses: Cost of goods sold $ 223,000 Selling expenses Administrative expenses Contribution margin Fixed expenses Selling expenses Administrative expenses Operating income $ 223,000 $ 0 3. What was the contribution toward fixed expenses and profits for each surfboard sold du Contribution per surfboard
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