Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

The following is the regular income statement for the first quarter of 2018 belonging to Al Sharq Electrical Appliances :: Income statement for the period

The following is the regular income statement for the first quarter of 2018 belonging to Al Sharq Electrical Appliances::

Income statement for the period ending in 31/03/2018

Statement

Partial (OMR)

Total (OMR)

  • Sales revenue
  • The cost of the sold goods

1600000

800000

Total revenue

Operation costs

Selling expenses

Administrative expenses

400000

200000

800000

600000

Operating Revenue

200000

If you know the following:

  1. The selling price of one piece is 8,000 riyals, and the company uses half of its available capacity

  1. The variable cost per piece is 750 riyals in relation to selling expenses, and the remainder of it is fixed costs.
  2. Administrative expenses are 25 of it is a variable and 75% is fixed.

Find:

Prepare an income statement on the basis of the contribution

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_2

Step: 3

blur-text-image_3

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

Keisters Corporation Accounting And Auditing

Authors: David Armel Keister

1st Edition

1019058382, 978-1019058381

More Books

Students explore these related Accounting questions