Ellie Inc. manufactures stuffed animals. During $2023,$ total costs incurred in making $10,000$ stuffed animals included $$55,000$ of selling, general, and administrative costs. The selling price per stuffed animal was $$30,$ while per unit product costs were $$8$ for direct materials, $$10$ for direct labor, and $$2$ for manufacturing overhead.

$($a$.)$ Prepare a traditional income statement based on the $10,000$ stuffed animals.

$($b$.)$ Calculate the gross margin ratio.

Answer rating: 100% (QA)

Ellie Inc Income Statement 2023 a Traditional Income Statement Description Amount Sales Revenue 1000... View the full answer