The first case of this course provides an opportunity to prepare a segmented variable costing (contribution margin, behavioral) income statement and analyze the information. This is a very small company and the information may seem simplistic at first glance. Dont forget that numbers and hands-on practice best illustrate many basic accounting concepts.

The Serious Reader Company is a small online retailer operating out of a garage apartment. The owner buys books at garage sales, thrift shops, library sales, and whenever an opportunity arises. The company classifies all books into five categories based on cost of acquisition and estimated sales price. See below for details about books purchased and sold during the last year (20XX).

Examples of answers given in good format. The last part of the assignment is

With the Serious Reader Company any suggestions as how to turn this into a full-business venture so the owner can quit his other job? Prepare an income statement to support this idea.

The income statements are listed on the page. From what I understand is that the question is to take the information and form a conclusion within a income statement of how the owner can turn this from a part time business to a full time? This is where I am completely lost