J Marigold, Ltd. is a local coat retailer. The stores accountant prepared the following income statement for the month ended January 31: (Make sure to scroll left and right to use the format of the problem on the chart. Also please show work.

Sales revenue					$	758,500
Cost of goods sold						315,500
Gross margin						443,000
Operating expenses
Selling expense		$	24,090
Administrative expense			51,440			75,530
Net operating income					$	367,470

Marigold 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.

Partially correct answer iconYour answer is partially correct.

Prepare a contribution format income statement for January. (Round per unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

					Per Unit
Select an income statement item Fixed ExpensesSales RevenueAdministrative ExpenseContribution MarginCost of Goods SoldTotal Variable ExpensesTotal Fixed ExpensesVariable ExpensesSelling ExpenseOperating Income			$Enter a dollar amount		$Enter a dollar amount
Select an opening name for section one Variable ExpensesOperating IncomeCost of Goods SoldSales RevenueTotal Fixed ExpensesAdministrative ExpenseSelling ExpenseContribution MarginFixed ExpensesTotal Variable Expenses:
Select an income statement item Operating IncomeVariable ExpensesCost of Goods SoldSelling ExpenseFixed ExpensesSales RevenueTotal Fixed ExpensesAdministrative ExpenseContribution MarginTotal Variable Expenses		Enter a dollar amount			Enter a dollar amount
Select an income statement item Fixed ExpensesTotal Variable ExpensesTotal Fixed ExpensesSales RevenueAdministrative ExpenseVariable ExpensesSelling ExpenseContribution MarginCost of Goods SoldOperating Income		Enter a dollar amount			Enter a dollar amount
Select an income statement item Sales RevenueTotal Fixed ExpensesAdministrative ExpenseOperating IncomeFixed ExpensesTotal Variable ExpensesContribution MarginVariable ExpensesSelling ExpenseCost of Goods Sold		Enter a dollar amount			$Enter a dollar amount
Select a closing name for section one Administrative ExpenseOperating IncomeVariable ExpensesContribution MarginCost of Goods SoldSales RevenueSelling ExpenseTotal Fixed ExpensesTotal Variable ExpensesFixed Expenses			Enter a total amount for section one		Enter a total amount for section one
Select a summarizing line for the first part Cost of Goods SoldOperating IncomeTotal Fixed ExpensesAdministrative ExpenseFixed ExpensesVariable ExpensesContribution MarginSales RevenueSelling ExpenseTotal Variable Expenses			Enter a total amount for the first part		$Enter a total amount per unit
Select an opening name for section two Selling ExpenseAdministrative ExpenseOperating IncomeContribution MarginVariable ExpensesCost of Goods SoldSales RevenueTotal Variable ExpensesFixed ExpensesTotal Fixed Expenses:
Select an income statement item Contribution MarginOperating IncomeSelling ExpenseTotal Variable ExpensesVariable ExpensesFixed ExpensesSales RevenueAdministrative ExpenseCost of Goods SoldTotal Fixed Expenses		Enter a dollar amount
Select an income statement item Total Fixed ExpensesSelling ExpenseFixed ExpensesTotal Variable ExpensesVariable ExpensesContribution MarginCost of Goods SoldSales RevenueOperating IncomeAdministrative Expense		Enter a dollar amount
Select a closing name for section two Sales RevenueVariable ExpensesFixed ExpensesSelling ExpenseOperating IncomeContribution MarginAdministrative ExpenseTotal Fixed ExpensesCost of Goods SoldTotal Variable Expenses			Enter a total amount for section two
Select a closing name for this statement Administrative ExpenseTotal Variable ExpensesTotal Fixed ExpensesVariable ExpensesSelling ExpenseCost of Goods SoldSales RevenueContribution MarginOperating IncomeFixed Expenses			$Enter a total amount for this statement

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Partially correct answer iconYour answer is partially correct.

Using the format y = mx + b, develop a cost formula for total expenses. (Round unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

Operating expenses =

$Enter a dollar amount rounded to 2 decimal places x

+

$Enter a dollar amount rounded to 0 decimal places

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Incorrect answer iconYour answer is incorrect.

If 3,000 coats are sold next month, what is the expected total contribution margin? (Round answer to 0 decimal places, e.g. 5,275.)

Contribution margin

$Enter the Contribution margin in dollars rounded to 0 decimal places