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.
Answer to relevant QuestionsConsider the Sportade example in Appendix 6A. Suppose that during April, the company produces 10,000 cases of powdered drink mix and sells 11,000 cases. Sales price, variable cost per case, and total fixed expenses remain ...Following are 12 cost behaviour graphs. The total cost is shown on the y-axis and the volume (activity) is shown on the x-axis. For each of the following situations, identify the graph that most closely represents the cost ...Use your judgment (just as a manager would use his or her judgment for account analysis) to determine the cost behaviour of each of the following personal costs: a. Apartment rental, $500 per month b. Local phone service ...Refer to Asokan’s “Golden Brown” Pancake Restaurant in E6-32A. Requirements 1. Use Microsoft Excel to perform regression analysis on Asokan’s monthly data. Based on the output, write Asokan’s monthly operating cost ...Complete the following statements with one of the terms listed here. You may use a term more than once, and some terms may not be used at all. a. The manager’s judgment is used to determine the cost behaviour of various ...
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