The Old Tyme Ice Cream Shoppe sold 9,400 servings of ice cream during June for $4 per serving. Old Tyme purchases the ice cream in large tubs from the Golden Ice Cream Company. Each tub costs Old Tyme $11 and has enough ice cream to fill 20 ice cream cones. Old Tyme purchases the ice cream cones for $0.10 each from a local warehouse club. Old Tyme Ice Cream Shoppe is located in a local strip mall, and rent for the space is $1,900 per month. Old Tyme expenses $230 a month for the depreciation of the Shoppe's furniture and equipment. During June, Old Tyme incurred an additional $2,100 of other operating expenses (75% of these were fixed costs).

Requirements

1. Prepare Old Tyme's June income statement using a traditional format.

2. Prepare Old Tyme's June income statement using a contribution margin format.