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Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners-Warm and Cozy. Current revenue,
Warm Hands, a small company based in Prince Edward Island, manufactures and sells two types of lightweight gloves for runners-Warm and Cozy. Current revenue, cost, and unit sales data for the two products appear below. Selling price per pair Variable expenses per pair Number of pairs sold monthly Warm Cozy $ 6.00 $ 9.00 $ 1.50 $ 4.50 3,000 units 1,000 units Fixed expenses are $2,160 per month. Required: 1. Assuming the sales mix above, do the following: I a. Prepare a contribution format income statement showing both dollars and percentage columns for each product and for the company as a whole. (Round percentage answers to 2 decimal places.) Warm 50 WARM HANDS Contribution Income Statement Cozy Total 0.00 SO 0.00 0 0.00 $0
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