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Please answer asap. I will give thumbs up to appreciate your help:) The Joshua Smith Company (JSC) is a wholesale toy distribution company. The company
Please answer asap. I will give thumbs up to appreciate your help:)
The Joshua Smith Company (JSC) is a wholesale toy distribution company. The company sells three products - Risk, Monopoly and Zingo. Budgeted unit sales by product for the month of December and associated selling price and variable costs are as follows: JSC also has $15,000 in fixed costs for the month. Required: Prepare a Contribution Margin Approach Budgeted Income Statement for JSC. To help the owner of JSC predict her business, based on the budgeted sales mix, complete the profit formula (for an average unit). Let the owner know how much profit would increase for every average unit sold. During the month of December, JSC actually sold 2,350 units: 1,200 Risk games; 550 Monopoly games; 600 Zingo games. All other factors and expenses were the same as budgeted. While the owner of JSC is happy about the overachievement in units sold, she is confused why the Operating Income did not increase as much as was demonstrated to her. In her last conversation with you she said: "Sales were up over $10,000. But profit only increased a little over $2,000. Based on the information you gave me that does not make sense. Are you sure your numbers are correct?" Required: Prepare a Contribution Margin Approach Actuals Income Statement for JSC. Write the owner a short memo explaining why actual results varied from the budgeted expectations
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