Question

In: Accounting

Celtics Pro Shop is a merchandiser that provided the following information regarding its 2017 NBA World...

Celtics Pro Shop is a merchandiser that provided the following information regarding its 2017 NBA World Champion sweatshirts :

AMOUNT:

Number of units sold . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . $30.

Variable selling expense per unit . . . . . . . . . . . . . . . $4.

Variable administrative expense per unit . . . . . . . . . $2.

Total fixed selling expense . . . . . . . . . . . . . . . . . . . $80,000.

Total fixed administrative expense . . . . . . . . . . . . . $60,000.

Beginning merchandise inventory . . . . . . . . . . . . . . $48,000.

Ending merchandise inventory . . . . . . . . . . . . . . . . $88,000.

Merchandise purchases . . . . . . . . . . . . . . . . . . . . . $360,000.

Required:

A) Prepare a traditional income statement.

B) Prepare a contribution format income statement.

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