Help Sas Milden Company ls a merchandiser that plans to sell 41,000 units during
ID: 2604696 • Letter: H
Question
Help Sas Milden Company ls a merchandiser that plans to sell 41,000 units during the next quarter at a selling price of $59 per unit. The company also gathered the following cost estimates for the next quarter Cost Fornula Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $30 per unit sold 186,000 per quarter 5t of aales $16,000 per quarter5.00 per unit sold 96,000 per quarter $10,600 per quarter $66,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter 2. Prepare a traditional format income statement for the next quarter. Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare a contribution format income statement for the next quarter. Contribution Format Income Statement Pree 4of4 111 Next 888 4 3 4 5 6 8 9Explanation / Answer
Answers
Working
Units
per unit
Total Amount
A
Sales Revenue
41000
59
2419000
B
Variable Costs
Cost of Goods Sold
41000
30
1230000
Sales commission
41000
2.95
120950
Shipping expenses
41000
5
205000
Total Variable costs
41000
37.95
1555950
C=A-B
Contribution Margin
41000
21.05
863050
D
Fixed Expenses
Advertising expenses
186000
Shipping expenses
16000
Administrative expenses
96000
Insurance expenses
10600
Depreciation expenses
66000
Total Fixed Expenses
374600
E=C-D
Net Income
488450
Working
Units
Per unit
Amount
A
Sales revenue
41000
59
2419000
B
Cost of Goods Sold
41000
30
1230000
C=A-B
Gross Profit
41000
29
1189000
D
Other expenses
Advertising expenses
186000
Shipping expenses
221000
Administrative expenses
96000
Insurance expenses
10600
Depreciation expenses
66000
Sales Commission
120950
Total other expenses
700550
E=C-D
Net Income
488450
Working
Units
per unit
Total Amount
A
Sales Revenue
41000
59
2419000
B
Variable Costs
Cost of Goods Sold
41000
30
1230000
Sales commission
41000
2.95
120950
Shipping expenses
41000
5
205000
Total Variable costs
41000
37.95
1555950
C=A-B
Contribution Margin
41000
21.05
863050
D
Fixed Expenses
Advertising expenses
186000
Shipping expenses
16000
Administrative expenses
96000
Insurance expenses
10600
Depreciation expenses
66000
Total Fixed Expenses
374600
E=C-D
Net Income
488450
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