J Bryant, Ltd. is a local coat retailer. The stores accountant prepared the following income statement for the month ended January 31.

Sales revenue	$	765,500
Cost of goods sold		305,000
Gross margin	460,500
Less operating expenses
Selling expense	$	24,830
Administrative expense		50,140		74,970
Net operating income	$	385,530

Bryant sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.

(a)

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Prepare a contribution format income statement for January.(Round units to 0 decimal places, e.g. 5,275. Round unit cost to 2 decimal places, e.g. 12.25 and all other answers to 0 decimal places, e.g. 45,000.)

Per Unit
Operating IncomeFixed ExpensesCost of Goods SoldSales RevenueContribution MarginAdministrative ExpenseTotal Variable ExpensesVariable ExpensesSelling ExpenseAdministration ExpenseTotal Fixed Expenses	$	$
AddLess Fixed ExpensesAdministration ExpenseTotal Fixed ExpensesSales RevenueTotal Variable ExpensesAdministrative ExpenseVariable ExpensesCost of Goods SoldContribution MarginOperating IncomeSelling Expense:
Cost of Goods SoldSelling ExpenseContribution MarginOperating IncomeAdministrative ExpenseSales RevenueTotal Variable ExpensesTotal Fixed ExpensesVariable ExpensesAdministration ExpenseFixed Expenses
Sales RevenueTotal Fixed ExpensesCost of Goods SoldVariable ExpensesSelling ExpenseAdministration ExpenseFixed ExpensesContribution MarginAdministrative ExpenseOperating IncomeTotal Variable Expenses
Selling ExpenseAdministrative ExpenseAdministration ExpenseTotal Fixed ExpensesOperating IncomeTotal Variable ExpensesFixed ExpensesVariable ExpensesCost of Goods SoldSales RevenueContribution Margin		$
Sales RevenueVariable ExpensesOperating IncomeFixed ExpensesTotal Fixed ExpensesSelling ExpenseCost of Goods SoldContribution MarginTotal Variable ExpensesAdministrative ExpenseAdministration Expense
Administrative ExpenseSelling ExpenseAdministration ExpenseTotal Variable ExpensesOperating IncomeVariable ExpensesTotal Fixed ExpensesFixed ExpensesSales RevenueCost of Goods SoldContribution Margin		$
AddLess Variable ExpensesCost of Goods SoldFixed ExpensesAdministrative ExpenseSales RevenueOperating IncomeContribution MarginTotal Variable ExpensesAdministration ExpenseSelling ExpenseTotal Fixed Expenses:
Total Fixed ExpensesOperating IncomeAdministration ExpenseFixed ExpensesTotal Variable ExpensesSales RevenueCost of Goods SoldContribution MarginAdministrative ExpenseVariable ExpensesSelling Expense
Administration ExpenseContribution MarginSelling ExpenseTotal Fixed ExpensesVariable ExpensesFixed ExpensesSales RevenueCost of Goods SoldAdministrative ExpenseOperating IncomeTotal Variable Expenses
Administrative ExpenseCost of Goods SoldContribution MarginTotal Fixed ExpensesOperating IncomeAdministration ExpenseTotal Variable ExpensesFixed ExpensesSelling ExpenseSales RevenueVariable Expenses
Administration ExpenseSelling ExpenseTotal Fixed ExpensesAdministrative ExpenseFixed ExpensesTotal Variable ExpensesSales RevenueContribution MarginCost of Goods SoldOperating IncomeVariable Expenses	$

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Attempts: 2 of 2 used

(b) Using the formaty = mx + b, develop a cost formula for total expenses.(Round unit cost to 2 decimal places, e.g. 12.25 and all other to 0 decimal places, e.g. 45,000.)

Operating expenses =

$ x

+

$