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McGillCorporationhasprovidedthefollowingforthreemonthsofincomestatements: July August September Salesin Units 500 1000 800 Sales 250,000 500,000 400,000 Less: cost ofgoodssold 125,000 250,000 200,000 Grossmargin 125,000 250,000 200,000 Operatingexpenses: Advertising
McGillCorporationhasprovidedthefollowingforthreemonthsofincomestatements:
July | August | September | |
Salesin Units | 500 | 1000 | 800 |
Sales | 250,000 | 500,000 | 400,000 |
Less: cost ofgoodssold | 125,000 | 250,000 | 200,000 |
Grossmargin | 125,000 | 250,000 | 200,000 |
Operatingexpenses: | |||
Advertising | 5,000 | 5,000 | 5,000 |
Salaries&Commissions | 72,500 | 85,000 | 80,000 |
Depreciationexpense | 10,000 | 10,000 | 10,000 |
Utilitiesexpense | 12,000 | 17,000 | 15,000 |
Total operatingexpenses | 99,500 | 117,000 | 110,000 |
NetIncome | 25,500 | 133,000 | 90,000 |
Required:
Assumethecompanyplansto sell900unitsnextmonth,prepareacontributionmarginincomestatement.
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