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I just need help finding where all the numbers come from to do this whole problem. Thanks. Special Seals is a specialty pet gift shop
I just need help finding where all the numbers come from to do this whole problem. Thanks.
Special Seals is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location. Results for last year are shown next: E: (Click the icon to view the results.) For internal planning and decision-making purposes, the owner of Special Seals would like to translate the company's income statement into the contribution margin format. Since Special Seals is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight-out charges ($20,600), 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 Special Seals' contribution margin income statement for last year. i Data Table 1,002,000 Special Seals Contribution Margin Income Statement For the Year Ended December 31 Sales revenue $ Less: Variable expenses variable e Cost of goods sold Variable selling and marketing expenses Variable website maintenance expenses Special Seals Traditional Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue $ 665,000 28,780 14,125 1,860 292,235 1,002,000 665,000 $ 337,000 Other variable operating expenses Contribution margin Less: Fixed expenses Fixed selling and marketing expenses Fixed website maintenance expenses Less: Cost of goods sold Gross profit Less operating expenses: Selling and marketing expenses Website maintenance expenses $ 32,720 42,375 16,740 61,500 56,500 18,600 136,600 Other operating expenses Other fixed operating expenses $ 200,400 Operating income Operating income 200,400 Print Print Done Done This question is complete. Move your cursor over or tap on the red arrows to see incorrect answersStep by Step Solution
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