J Sheridan, Ltd. is a local coat retailer. The stores accountant prepared the following income statement for the month ended January 31: Sales revenue $ 795,000 Cost of goods sold 311,000 Gross margin 484,000 Operating expenses Selling expense $ 24,150 Administrative expense 51,800 75,950 Net operating income $ 408,050 Sheridan 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.

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 Sales Revenue $ $ 795,000 Variable Expenses Cost of Goods Sold 311,000 Selling Expense 20,670 i Administrative Expense 39,750 i $ Total Variable Expenses 371,420 Contribution Margin $ 423,580 Fixed Expenses Selling Expense 3.480 i Administrative Expense 12.050 i Total Fixed Expenses 15,530 i Operating Income 408,050 Your 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.) $ 371,420 x $ 15,530 Operating expenses = e Textbook and Media X Your answer is incorrect. If 3,400 coats are sold next month, what is the expected total contribution margin? (Round answer to 0 decimal places, e.g. 5,275.) Contribution margin