Marlo's Ice Cream Shoppe sold 9,500 servings of ice cream during June for $2 per serving. Marlo purchases the ice cream in large tubs from the Georgia Ice Cream Company. Each tub costs Marlo $11 and has enough ice cream to fill 20 ice cream cones. Marlo purchases the ice cream cones for $0.10 each from a local warehouse club. The shop is located in a local strip mall, and she pays $1,750 a month to lease the space. Marlo expenses $230 a month for the depreciation of the shop's furniture and equipment. During June, Marlo incurred an additional $2,900 of other operating expenses (75% of these were fixed costs).
Requirements
1. Prepare Marlo's June income statement using a traditional format.
2. Prepare Marlo's June income statement using a contribution margin format.