Revenues Exhibit 1 JW Sports Supplies (A) Income Statement for Most Recent Year of Operation Cost of goods sold (COGS) Gross margin Selling, general, and administrative expenses (SG&A) Profit before tax Source: All exhibits created by author. $1,837,200 1,274,000 563,200 345,000 $ 218,200 Units Produced and Sold Exhibit 4 JW Sports Supplies (A) Monthly Costs at Different Volume Levels Formula Cost Category 1200 1900 Manufacturing? Cost Behavior Y = m X + b Direct Material $ 36,000 $ $ 57,000 Yes Variable y = 30 X + Direct Labor 18,000 28,500 Yes Variable y = 15 + Rent 5,000 5,000 Yes Fixed y = X + 5,000 Depreciation 4,000 4,000 Yes Fixed y = X + 4,000 Electricity 4,400 5,800 yes Variable y = Other Manufacturing 19,600 21,700 No Variable y = 23 X + 2,000 + 16,000 Selling 8,000 8,000 No Fixed y = X + 8,000 Sales Commission 12,000 19,000 No Variable y = 10 X + Administrative 5,000 5,000 No Fixed y = - x X + 5,000 $ 112,000 $ 154,000 60 60 40,000 C D E Production/Sales Data Salling price per unit Direct Material Direct Labor Rent Depreciation Electricity Other Manufacturing Selling Sales Commission Administrative Months F G H | 18,372 units 100 J 30 15 5,000 4,000 2 RCGSD Se P 3 8,000 10 5,000 12 JW Sports Supply Contributed Annual Income Statement For Year Ended December 31, 2021 Revenues Variable Costs Direct Material Direct Labor Electricity Other Manufactoring Sales Commision $ 1,837,200 551,160 275,580 36,744 55,116 183,720 Total 1,102,320 Contribution Margin 734,880 Fixed Expenses Rent 60,000 Depreciation 48,000 Selling $ 96,000 Administrative $ 60,000 Total $ 264,000 Net Operating income $ 470,880 Profit before tax