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this is the problem i need help with... and this is the example they gave me Same Company - Contribution Margin Income Statement 5,000 toys
this is the problem i need help with... and this is the example they gave me Same Company - Contribution Margin Income Statement 5,000 toys sold $40 per toy 60% of selling price Revenue: Quantity of toys sold Average sale price of toys Purchase price from Toy Supplier Selling Expenses: Rent Complimentary Shipping to customers Sales Salaries + commissions Advertising Depreciation on department laptops Administrative Expenses: Depreciation on office equipment Offsite billing department Administrative salaries Employee benefits 8,000 per month $5 per toy sold $3,000 per month, plus $2,000 per month $600 per month 10% of sales $800 per month $1,000 per month, plus $1 $6,000 per month 20% of administrative salaries per toy sold Toy Store Contribution Margin Income Statement For the month ended December 31 (see page 9 for example) I ho the same for both income statements. Same Company - Prepare a Contribution Margin Income Statement Revenue: Quantity of necklaces sold 400 necklaces sold Average sale price of necklace 50 per nerace Cost of Goods Sold 11 per necklace Selling Expenses Advertising 1.500 per month Sales salaries and commissions 900 per month, plus 4% of sales Delivery of necklaces to customers per necklace Store Rent 900 per month Depreciation of sales equipment 600 per month Administrative Expenses: Office salaries 4,000 per month Employee benefits 600 per month Clerical 800 per month, plus $6 per necklace Depreciation of office equipment 900 per month Jewelry 4 U Contribution Margin Income Statement For the month ended December 31 Total 20,000 Per Unit 50 (940 (800) (00 (2400) (10.000) SOX4 =644 C200 Sales Variable expenses: Cost of goods sold Sales commissions Delivery of necklaces Clerical Total variable expenses Contribution margin Fixed expenses: Advertising Sales salaries Store rent Depreciation on sales equipment Office salaries Employee benefits Clerical Depreciation on office equip Total fixed expenses Operating income (loss) (1500) (900) (900) (600) (4000) (600) (800) (900) 10,000) 1000) How much profit will they make if they sell 100 more necklaces? Chapter 6 Lecture - Page 9
this is the problem i need help with...
and this is the example they gave me
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