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Harry Company produces shoes. Harry plans to sell 29000 pairs of shoes at a selling price of $59 per unit over the next month. Harry
Harry Company produces shoes. Harry plans to sell 29000 pairs of shoes at a selling price of $59 per unit over the next month. Harry estimates the following costs for the next month:
Cost | Formula |
COGS | $28/pair |
Sales Commission | 4% of sales |
Employees' Salaries | $87,000 per month |
Depreciation | $300 per month |
Shipping | $32,000 per month + $3/pair |
Presuming both use the same costing system, what is the difference between the net operating income calculated on traditional format income statement and that on a contribution format income statement for the next month (in dollars)?
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