Problem D2-25 (Part Level Submission)

J Crane, Ltd. is a local coat retailer. The stores accountant prepared the following income statement for the month ended January 31:

Sales revenue					$	750,000
Cost of goods sold						300,000
Gross margin						450,000
Operating expenses
Selling expense		$	23,560
Administrative expense			49,500			73,060
Net operating income					$	376,940

Crane sells its coats for $250 each. Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales

Prepare a contribution format income statement for January.