Question
Maui Mikes is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31: Total sales revenue $750,000
Maui Mikes is a large retailer of surfboards. The company assembled the information shown
below for the quarter ended May 31:
Total sales revenue | $750,000 |
Selling price per unit | $500 |
Variable selling expense per unit | $40 |
Variable administrative expense per unit | $15 |
Total fixed selling expense | $125,000 |
Total fixed administrative expense | $100,000 |
Merchandise inventory, beginning balance | $65,000 |
Merchandise inventory, ending balance | $85,000 |
Merchandise purchases | $295,000 |
1. Prepare a traditional income statement for the quarter ended May 31.
2. Prepare a contribution format income statement for the quarter ended May 31.
3. What was the contribution toward fixed expenses and profits for each surfboard sold during
the quarter? (State this figure in a single dollar amount per surfboard.)
(i need the number 3 solved pleas that one is important)
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