Question: please help me with this question Elegant Elephants is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location.
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 next: (Click the icon to view the results.) For Internal planning and decision-making purposes, the owner of Elegant Elephants would like to translate the company's income statement into the contribution margin format. Since Elegant Elephants 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 ($20.600), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable or the other operating expenses, 90% were fixed. Based on this information, prepare Elegant Elephants' contribution margin income statement for last year. Data Table 1.000.000 29680 14750 1820 Elegant Elephants Contribution Margin Income Statement For the Year Ended December 31 Sales revenue Less: Cost of goods sold Variable selling and marketing expenses Variable website maintenance expenses Other variable operating expenses Total variable expenses Contribution margin Less: Fixed expenses Fixed selling and marketing expenses Food website maintenance expenses Other foued operating expenses Total foxed expenses 1,000,000 675,000 46250 961750 Elegant Elephants Traditional Income Statement (Absorption Costing) For the Year Ended December 31 Sales revenue $ Less Cost of goods sold Gross profit $ Less operating expenses Selling and marketing expenses $ 66,000 Website maintenance expenses 59,000 18.200 Other operating expenses $ Operating Income 333,000 36320 44250 143.200 189,800 Choose from any list or enter any number in the input fields and then click Check Answer. Print Done All parts showing Check
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