Question

Fanelli Corporation, a merchandising company, reported the following results for July: 6,500 610 417 Number of units sold Selling price per unit Unit cost of goods sold Variable selling expense per unit Total fixed selling expense Variable administrative expense per unit Total fixed administrative expense $126,000 $207,900 Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July b. Prepare a contribution format income statement for July Complete this question by entering your answers in the tabs below.

PLEASE help with questions 1 through 5! I greatly appreciate it!

Answer 1

Fenelli Corporation:

A)
Fanelli Corporation
For the month of July
Traditional Income Statement
Sales Revenue (6,500 units * $610 per unit)		$3,965,000
Less: Cost of Goods Sold (6,500 units * $417 per unit)		($2,710,500)
Gross Margin		$1,254,500
Less: Selling and Administrative Expenses:
Selling Expenses:
Variable (6,500 units * $58 per unit)	($377,000)
Fixed	($126,000)
Administrative Expenses:
Variable (6,500 units * $26 per unit)	($169,000)
Fixed	($207,900)
Total Selling and Administrative Expenses		($879,900)
Net Operating Income		$374,600
B)
Fanelli Corporation
For the month of July
Contribution Format Income Statement
Sales Revenue (6,500 units * $610 per unit)		$3,965,000
Less: Variable Expenses:
Cost of Goods Sold (6,500 units * $417 per unit)	($2,710,500)
Variable Selling (6,500 units * $58 per unit)	($377,000)
Variable Administrative (6,500 units * $26 per unit)	($169,000)
Total Variable Expenses		($3,256,500)
Contribution Margin		$708,500
Less: Fixed Costs:
Fixed Selling	($126,000)
Fixed Administrative	($207,900)
Total Fixed Expenses		($333,900)
Net Operating Income		$374,600