Question: J Bryant Ltd is a local coat retailer The store s

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

Bryant 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.
b. Using the format y - mx + b, develop a cost formula for total expenses.
c. If 2,700 coats are sold next month, what is the expected total contributionmargin?

Sale on SolutionInn
  • CreatedFebruary 21, 2014
  • Files Included
Post your question