Elegant Elephants is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location. Results for last year are shown nex.

 

 

For internal planning and decision-making purposes the owner of Elegant Elephants Elegant Elephants would like to translate the company's income statement into the contribution margin format Since Elegant Elephants Elegant Elephants is web-based all of its cost of goods sold is variable A large portion of the selling and marketing expenses consists of freight out charges $19,800 which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable. Of the other operating expenses, 90% were fixed. Based on this information, prepare Elegant Elephants contribution margin income statement for last year.

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O Data Table Elegant Elephants Traditional Income Statement (Absorption Costing For the Year Ended December 31 $ 1,008,000 Salea revenue Less: Coat of goods sold 68.000 Gross proft 340,000 Lese oporating expenses Saling and markating expenses 61,500 Website martenance esperses 50.500 17.200 137.200 Other operaing expenses 202 B00 Operating incoma O Data Table Elegant Elephants Traditional Income Statement (Absorption Costing For the Year Ended December 31 $ 1,008,000 Salea revenue Less: Coat of goods sold 68.000 Gross proft 340,000 Lese oporating expenses Saling and markating expenses 61,500 Website martenance esperses 50.500 17.200 137.200 Other operaing expenses 202 B00 Operating incoma

Answer rating: 100% (QA)

Income Statement Sales Revenue 1008000 Less Variable Expenses Cost of Goods sold 668000 Variabl... View the full answer