The

Magic Freeze

Ice Cream Shoppe sold

9,100

servings of ice cream during June for

$5

per serving. The shop purchases the ice cream in large tubs from the

Dream

Ice Cream Company. Each tub costs the shop

$15

and has enough ice cream to fill

30

ice cream cones. The shop purchases the ice cream cones for

$0.20

each from a local warehouse club. Located in an outdoor mall, the rent for the shop space is

$2,050

per month. The shop expenses

$220

a month for the depreciation of the shop's furniture and equipment. During June, the shop incurred an additional

$2,600

of other operating expenses

(75%

of these were fixed costs). Read the requirements

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Part 1

Requirement 1. Prepare The

Magic Freeze

Ice Cream Shoppe's June income statement using a traditional format.

The Magic Freeze Ice Cream Shoppe
Income Statement
For the Month Ended June 30
Less:
Less:

Part 2

Requirement 2. Prepare The

Magic Freeze

Ice Cream Shoppe's June income statement using a contribution margin format.

The Magic Freeze Ice Cream Shoppe
Contribution Margin Income Statement
For the Month Ended June 30
Less:
Less:

1. Prepare The Magic Freeze Ice Cream Shoppe's June income statement using a traditional format. 2. Prepare The Magic Freeze Ice Cream Shoppe's June income statement using a contribution margin format