Question
The Old Tyme Ice Cream Shoppe sold 8,700 servings of ice cream during June for $5 per serving. The shop purchases the ice cream in
The Old Tyme Ice Cream Shoppe sold 8,700 servings of ice cream during June for $5 per serving. The shop purchases the ice cream in large tubs from the Amazing Ice Cream Company. Each tub costs the shop $9 and has enough ice cream to fill 20 ice cream cones. The shop purchases the ice cream cones for $0.25 each from a local warehouse club. Located in an outdoor mall, the rent for the shop space is $1,600 per month. The shop expenses $240 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).
Requirements
1. | Prepare The Old Tyme Ice Cream Shoppe's June income statement using a traditional format. |
2. | Prepare The Old Tyme Ice Cream Shoppe's June income statement using a contribution margin format. |
Requirement 1. Prepare The Old Tyme Ice Cream Shoppe's June income statement using a traditional format.
The Old Tyme Ice Cream Shoppe | |||
Income Statement | |||
For the Month Ended June 30 | |||
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Requirement 2. Prepare The Old Tyme Ice Cream Shoppe's June income statement using a contribution margin format.
The Old Tyme Ice Cream Shoppe | |||
Contribution Margin Income Statement | |||
For the Month Ended June 30 | |||
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