Qr Traditional v CM Income Statement

Francis created a mobile truck business making bean and cheese burritos: During September, Francis sold go

burritos for $8 each. Ingredients include rice, whole wheat tortillas, black beans, grated mozzarella cheese :

sauce, as well as paper packaging to wrap the burritos. Francis heats the burritos on a grill press. A parking

spot is rented from the city for $1,500 per month. Other vehicle costs total $1,200 per month of which 30x is

variable and pox fixed. Paper packing comes in boxes of 500 paper wraps for $20 per box. Food ingredients

are purchased in bulk: Francis pays $1,500 for rice, whole wheat tortillas, black beans and cheese: this order

enough for 400 burritos. The grill press is depreciated $100 per month.

A. Prepare a CM Income Statement using the cost data above for the month of September.

B. Prepare a Traditional Income Statement using the cost data above for the month of September.

C. Which income statement is used by managers for internal planning? Explain your answer in a few

words.