Question

Prepare a contribution income statement with the following information for a merchandiser: Chapter 1, Introduction to Managerial Accounting (8th Edition)

Number of units sold		12,000
Selling price per unit	$	16
Variable selling expense per unit	$	2
Variable administrative expense per unit	$	2
Total fixed selling expense	$	21,000
Total fixed administrative expense	$	15,000
Beginning merchandise inventory	$	10,000
Ending merchandise inventory	$	23,000
Merchandise purchases	$	88,000

Answer 1

192,000 Merchandiser contoibcllion Format Income statemeel- Seles variable expenses. Cost o-goods sold 77,000 Seoeing experses 12,000 Adnan Stooltve Expenses 20.000 113000 79,00 Contribution margin Fixed cupenses: Seceang expenses Adem pe stoclive experses. 21,000 15,000 36.000 43,000 Neel-opeddling income, Explanation' 1. Scele : ($16 per unit x 12000 units) - $ 192,000 Costo-goods Sold : C$ 12000 + $ 88000 - $ 23000) - $77,000 selling expenses : Co2 peo unat x 12,000 units) = $12,000 Administrative experses: @a per unit x 12000 Insts) - $24,000