Elegant Elephants is a specialty pet gift shop selling exotic pet-related items online. The shop has no
Question:
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.
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver