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.

Required
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?
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  • CreatedFebruary 21, 2014
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