Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Super confused on this please help me solve, ASAP. I cannot figure out how to solve equtaion, my teacher has not provided me with the

Super confused on this please help me solve, ASAP. I cannot figure out how to solve equtaion, my teacher has not provided me with the formulas, and I am not sure what to multiple. However, what I do understand is that I add the final totals to find the operating income, however, the sales revenue section and fixed expenses have confused me Thanks!!

image text in transcribed
Fabulous Flamingos is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location. Results for last year are shown next: (Click the icon to view the results.) For internal planning and decision-making purposes, the owner of Fabulous Flamingos would like to translate the company's income statement into the contribution margin format. Since Fabulous Flamingos is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight-out charges ($20,800), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable. Of the other operating expenses, 90% were fixed. Based on this information, prepare Fabulous Flamingos' contribution margin income statement for last year. i Data Table X Fabulous Flamingos Contribution Margin Income Statement For the Year Ended December 31 Sales revenue $ Fabulous Flamingos 996,000 Traditional Income Statement (Absorption Costing) Less: Variable expenses For the Year Ended December 31 Cost of goods sold Sales revenue $ 996,000 Variable selling and marketing expenses Variable website maintenance expenses Less: Cost of goods sold 666,000 Gross profit $ 330,000 Other variable operating expenses Less operating expenses: Contribution margin Selling and marketing expenses 66,000 Less: Fixed expenses Website maintenance expenses 57,000 Fixed selling and marketing expenses 18,600 141,600 Fixed website maintenance expenses Other operating expenses Operating income 188,400 Choose from any list or enter any number in the input fields and then click Check A ? Print Done All parts showing Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

10th Edition

0808056301, 9780808056300

More Books

Students also viewed these Accounting questions

Question

1. To understand how to set goals in a communication process

Answered: 1 week ago