Question

Whitman Corporation, a merchandising company, reported sales of 17,300 units for May at a selling price of $693 per unit. The cost of goods sold (all variable) was $495 per unit and the variable selling expense was $55 per unit. The total fixed selling expense was $155,900. The variable administrative expense was $33 per unit and the total fixed administrative expense was $378,100.

Required:
a.	Prepare a contribution format income statement for May. (Input all amounts as positive values. Omit the "$" sign in your response.)

Whitman Corporation Income Statement
(Click to select)  Sales  Cost of goods sold  Fixed selling expense  Fixed administrative expense  Variable administrative expense  Net operating income (loss)  Contribution margin  Variable selling expense		$
Variable expenses:
(Click to select)  Contribution margin  Cost of goods sold  Net operating income (loss)  Variable selling expense  Fixed selling expense  Sales  Depreciation expense  Variable administrative expense  Fixed administrative expense	$
(Click to select)  Variable administrative expense  Net operating income (loss)  Depreciation expense  Variable selling expense  Sales  Fixed administrative expense  Cost of goods sold  Fixed selling expense  Contribution margin
(Click to select)  Depreciation expense  Cost of goods sold  Variable selling expense  Sales  Variable administrative expense  Net operating income (loss)  Fixed selling expense  Contribution margin  Fixed administrative expense
(Click to select)  Sales  Cost of goods sold  Fixed selling expense  Net operating income (loss)  Fixed administrative expense  Variable administrative expense  Contribution margin  Variable selling expense
Fixed expenses:
(Click to select)  Variable administrative expense  Cost of goods sold  Fixed administrative expense  Sales  Contribution margin  Variable selling expense  Fixed selling expense  Net operating income (loss)
(Click to select)  Contribution margin  Fixed administrative expense  Sales  Net operating income (loss)  Variable administrative expense  Fixed selling expense  Variable selling expense  Cost of goods sold
(Click to select)  Fixed selling expense  Variable selling expense  Variable administrative expense  Net operating income (loss)  Sales  Contribution margin  Fixed administrative expense  Cost of goods sold		$

b.	Prepare a traditional format income statement for May. (Input all amounts as positive values. Omit the "$" sign in your response.)

                                        

Whitman Corporation Income Statement
(Click to select)  Administrative expense  Cost of goods sold  Net operating income (loss)  Sales  Gross margin  Selling expense		$
(Click to select)  Gross margin  Cost of goods sold  Net operating income (loss)  Selling expense  Sales  Administrative expense
(Click to select)  Administrative expense  Cost of goods sold  Sales  Selling expense  Net operating income (loss)  Gross margin
Operating expenses:
(Click to select)  Administrative expense  Selling expense  Sales  Gross margin  Cost of goods sold  Net operating income (loss)	$
(Click to select)  Sales  Gross margin  Cost of goods sold  Administrative expense  Selling expense  Net operating income (loss)
(Click to select)  Sales  Selling expense  Gross margin  Administrative expense  Cost of goods sold  Net operating income (loss)		$

Answer 1

Answer a
Contribution Format Income Statement
Whitman Corporation
Income Statement
Sales		11,988,900
Variable Expenses :
Cost of good sold	8,563,500
Variable administrative expense	570,900
Variable selling expense	951,500
Contribution Margin		1,903,000
Fixed Expenses:
Fixed administrative expense	378,100
Fixed selling expense	155,900
Net operating income (loss)		1,369,000
Answer b
Traditional Format Income Statement
Whitman Corporation
Income Statement
Sales		11,988,900
Cost of goods sold		8,563,500
Gross Margin		3,425,400
Operating Expenses :
Administrative Expenses	949,000
Selling Expenses	1,107,400	2,056,400
Net operating income (loss)		1,369,000