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Please help. Problem 2-25 (Part Level Submission) Swifty, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month
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Problem 2-25 (Part Level Submission) Swifty, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31: $ 750,000 352,000 398,000 Sales revenue Cost of goods sold Gross margin Operating expenses Selling expense Administrative expense Net operating income $ 24,330 51,790 76,120 S 321,880 Swifty sells its coats for $250 cach. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales. *(a) Your answer is correct. Prepare a contribution format income statement for January. (Round per unit cost to 2 decimal places, e.g. 52.75 and all other answers to decimal places, e.g. 5,275.) Per Unit Sales Revenue $750000 Variable Expenses 352000 17.33 Cost of Goods Sold Selling Expense Administrative Expense Total Variable Expenses Contribution Margin Fixed Expenses Selling Expense Administrative Expense Total Fixed Expenses 5409000 141000 136.33 113.67 24290 19120 $1321880 Operating Income *(b) Using the format y = mx + b, develop a cost formula for total expenses. (Round unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.) Operating expenses - $ x + $Step by Step Solution
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