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Reliable Merchandising Inc. The following data has been taken from the records of the company for the month of October 31, 2019. Standard buys and
Reliable Merchandising Inc. The following data has been taken from the records of the company for the month of October 31, 2019. Standard buys and resells restaurant dinnerware. Reliable Merchandising Inc. Income Statement For the month ended October 31, 2019 336,000 235,200 100,800 Sales Revenue Cost of Goods Sold Gross Margin Selling and Administration Administration Selling Total Selling and Admin Operating Income 30,000 55,000 85,000 15,800 Additional information: 0 Units sold for the month = 12,000 Administration costs are 15% variable. Selling costs includes commissions that are 5% of sales. Selling costs includes delivery costs of $1.50 per unit sold. Required: 1. Restate the income statement in the contribution format with full contribution information
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