Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me solve this managerial accounting question as I need help studying for my final QI Total sales revenue Selling price per snowboard Variable

image text in transcribed
Please help me solve this managerial accounting question as I need help studying for my final
image text in transcribed

QI Total sales revenue Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases Required: Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: 370, 118, Amount $1, 444, 380 65 20 340 , 98, 362, 2. Prepare a contribution format income statement for the quarter ended December 31. Winter Leisure Contribution Format Income Statement Quarter ended December 31 1. Prepare a traditional income statement for the quarter ended December 31. Winter Leisure Traditional Income Statement Quarter ended December 31 Sales Sales Variable expenses: Cost of goods sold Selling expenses Administrative expenses Contribution margin Fixed expenses: Selling expenses Administrative expenses Operating income 342,000 247,000 76,000 370,000 340,000 665,000 779,000 710,000 69,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Operating income 617,000 416,000 342,000 1,102,000 69,000 3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) 'bution 205 per snowboard 4. What would operating income be if only 3,300 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 3,300 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Advanced Accounting In Canada

Authors: Hilton Murray, Herauf Darrell

7th Edition

1259066487, 978-1259066481

Students also viewed these Accounting questions