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Paula's Quilt Shoppe sells homemade Amish quilts. Paula buys the quilts from local Amish artisans for $270 each, and her shop sells them for $440
Paula's Quilt Shoppe sells homemade Amish quilts. Paula buys the quilts from local Amish artisans for $270 each, and her shop sells them for $440 each. She also pays a sales commission of 6% of sales revenue to her sales staff. Paula leases her country-style shop for $$1,600 per month and pays $1,500 per month in payroll costs in addition to the sales commissions. Paula sold 95 quilts in February. Prepare Paula's traditional income statement and contribution margin income statement for the month.
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