Question

J Bonita, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended January 31:

Sales revenue					$	769,000
Cost of goods sold						584,440
Gross margin						184,560
Operating expenses
Selling expense		$	23,970
Administrative expense			51,470			75,440
Net operating income					$	109,120

Bonita sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.

(a)

Prepare a contribution format income statement for January. (Round per unit cost to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

					Per Unit
select an income statement item                                                                      Variable ExpensesCost of Goods SoldOperating IncomeTotal Variable ExpensesFixed ExpensesTotal Fixed ExpensesContribution MarginSales RevenueAdministrative ExpenseSelling Expense			$enter a dollar amount		$enter a dollar amount
select an opening name for section one                                                                      Fixed ExpensesOperating IncomeSales RevenueContribution MarginAdministrative ExpenseCost of Goods SoldVariable ExpensesTotal Variable ExpensesTotal Fixed ExpensesSelling Expense:
select an income statement item                                                                      Selling ExpenseTotal Variable ExpensesContribution MarginSales RevenueAdministrative ExpenseFixed ExpensesCost of Goods SoldVariable ExpensesOperating IncomeTotal Fixed Expenses		enter a dollar amount			enter a dollar amount
select an income statement item                                                                      Operating IncomeSelling ExpenseTotal Fixed ExpensesContribution MarginVariable ExpensesAdministrative ExpenseTotal Variable ExpensesSales RevenueCost of Goods SoldFixed Expenses		enter a dollar amount			enter a dollar amount
select an income statement item                                                                      Selling ExpenseSales RevenueFixed ExpensesContribution MarginVariable ExpensesAdministrative ExpenseTotal Variable ExpensesOperating IncomeTotal Fixed ExpensesCost of Goods Sold		enter a dollar amount			$enter a dollar amount
select a closing name for section one                                                                      Variable ExpensesFixed ExpensesSales RevenueAdministrative ExpenseTotal Variable ExpensesSelling ExpenseCost of Goods SoldTotal Fixed ExpensesOperating IncomeContribution Margin			enter a total amount for section one		enter a total amount per unit for section one
select a summarizing line for the first part                                                                      Fixed ExpensesContribution MarginOperating IncomeAdministrative ExpenseSelling ExpenseTotal Variable ExpensesTotal Fixed ExpensesCost of Goods SoldSales RevenueVariable Expenses			enter a total amount for the first part		$enter a total amount per unit for the first part
select an opening name for section two                                                                      Variable ExpensesOperating IncomeContribution MarginFixed ExpensesTotal Fixed ExpensesCost of Goods SoldAdministrative ExpenseTotal Variable ExpensesSales RevenueSelling Expense:
select an income statement item                                                                      Sales RevenueSelling ExpenseFixed ExpensesOperating IncomeContribution MarginCost of Goods SoldAdministrative ExpenseTotal Fixed ExpensesVariable ExpensesTotal Variable Expenses		enter a dollar amount
select an income statement item                                                                      Total Variable ExpensesAdministrative ExpenseCost of Goods SoldSales RevenueContribution MarginVariable ExpensesOperating IncomeFixed ExpensesSelling ExpenseTotal Fixed Expenses		enter a dollar amount
select a closing name for section two                                                                      Contribution MarginAdministrative ExpenseSelling ExpenseOperating IncomeVariable ExpensesTotal Variable ExpensesCost of Goods SoldSales RevenueFixed ExpensesTotal Fixed Expenses			enter a total amount for section two
select a closing name for this statement                                                                      Cost of Goods SoldFixed ExpensesSales RevenueOperating IncomeVariable ExpensesAdministrative ExpenseTotal Variable ExpensesContribution MarginTotal Fixed ExpensesSelling Expense			$enter a total amount for this statement

Answer 1

Please comment for any explanation,

Thanks,