Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold Selling...

 

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Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold Selling price per unit Unit cost of goods sold 6,400 $ 600 $416 Variable selling expense per unit Total fixed selling expense Variable administrative expense per unit Total fixed administrative expense Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July. $ 56 $ 125,900 $ 24 $ 207,800 Fanelli Corporation For the month of July Traditional Income Statement Sales 3,840,000 Cost of goods sold 2,662,400 Gross margin 1,177,600 Selling and administrative expenses: Selling expense Administrative expense 484,300 361,400 Net operating income 845,700 $ 331,900 Sales Variable expenses: Cost of goods sold For the month of July Contribution Format Income Statement Selling expense Administrative expense Fixed expenses: Selling expense Administrative expense Net operating income $ 2,662,400 358,400 153,600 69 $ 125,900 207,800 $ 3,840,000 3,174,400 665,600 333,700 $ 331,900 Fanelli Corporation, a merchandising company, reported the following results for July: Number of units sold Selling price per unit Unit cost of goods sold 6,400 $ 600 $416 Variable selling expense per unit Total fixed selling expense Variable administrative expense per unit Total fixed administrative expense Cost of goods sold is a variable cost in this company. Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July. $ 56 $ 125,900 $ 24 $ 207,800 Fanelli Corporation For the month of July Traditional Income Statement Sales 3,840,000 Cost of goods sold 2,662,400 Gross margin 1,177,600 Selling and administrative expenses: Selling expense Administrative expense 484,300 361,400 Net operating income 845,700 $ 331,900 Sales Variable expenses: Cost of goods sold For the month of July Contribution Format Income Statement Selling expense Administrative expense Fixed expenses: Selling expense Administrative expense Net operating income $ 2,662,400 358,400 153,600 69 $ 125,900 207,800 $ 3,840,000 3,174,400 665,600 333,700 $ 331,900

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To prepare the income statements for Fanelli Corporation for July we will calculate both the traditi... View the full answer