Question: Need all reqs :) Beautiful Baboons is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location. Results for

Need all reqs :)

Need all reqs :) Beautiful Baboons is a specialty pet gift shop

Beautiful Baboons is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location. Results for last year are shown next: (Click the icon to view the results.) For internal planning and decision-making purposes, the owner of Beautiful Baboons would like to translate the company's income statement into the contribution margin format. Since Beautiful Baboons is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight-out charges ($20,800), 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 Beautiful Baboons' contribution margin income statement for last year. Beautiful Baboons Contribution Margin Income Statement For the Year Ended December 31 - X Data table Less: Less: B 1 Beautiful Baboons 2 Traditional Income Statement (Absorption Costing) 3 For the Year Ended December 31 4 Sales revenue $ 985.000 5 Less: Cost of goods sold 672.000 6 Gross profit 313,000 7 Less operating expenses: 8 Selling and marketing expenses $ 66,000 9 Website maintenance expenses 59.500 10 Other operating expenses 17,700 143 2001 11 Operating income 169,800 Print Done

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!