Question

Pam’s Quilt Shoppe sells homemade Mennonite quilts. Pam buys the quilts from local Mennonite artisans for $250 each, and her shop sells them for $350 each. Pam also pays a sales commission of 5% of sales revenue to her sales staff. Pam leases her country-style shop for $1,000 per month and pays $1,200 per month in payroll costs in addition to the sales commissions. Pam sold 80 quilts in February. Prepare Pam’s traditional income statement and contribution margin income statement for the month.


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  • CreatedApril 30, 2015
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