Problem 2-25

J Vaughn, Ltd. is a local coat retailer. The stores accountant prepared the following income statement for the month ended January 31:

Sales revenue					$	799,500
Cost of goods sold						374,500
Gross margin						425,000
Operating expenses
Selling expense		$	24,580
Administrative expense			51,220			75,800
Net operating income					$	349,200

Vaughn sells its coats for $250 each. 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.

	Your answer is partially correct. Try again.

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 0 decimal places, e.g. 5,275.)

					Per Unit

			$		$

:

					$

					$

:

$