PART B

Cleveland Coats is a local specialty coat retailer. The stores accountant, Megan, prepared the following traditional income statement for the month ended January 31, 20Y3.

DESCRIPTIONAMOUNTSales Revenue ($250 per Coat)$250,000Cost of Goods Sold$100,000Gross Profit$150,000Operating Expenses Rent Expense$10,000Selling Expense$23,560Administrative Expense$49,500Operating Income$66,940 The selling expense consists of a fixed amount, plus a commission of $6.50 per coat sold.The administrative expense consists of a fixed amount, plus a variable component equal to 6% of sales.

Using the information provided, complete the contribution margin income statement for January 20Y3. You are required to show your work in the table below.

DESCRIPTIONAMOUNTREQUIRED - SHOW WORK HERESALES REVENUE VARIABLE COSTS CONTRIBUTION MARGIN FIXED COSTS OPERATING INCOME