The 4 x 4 Shop is a large retailer of equipment for pickup trucks. An income...
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The 4 x 4 Shop is a large retailer of equipment for pickup trucks. An income statement for the company's Bed Liner Department for the most recent quarter is presented below: The 4 x 4 Shop Income Statement - Liner Department For First Quarter of Curren Year Sales $700,000 250,000 Less: Cost of goods sold Gross margin Less: Operating expenses: Selling expenses Administrative expenses 450,000 $195,000 145,000 340,000 Net income $110,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its liners from a supplier at a cost of $125 per liner. Required: Prepare an income statement for the quarter, using the contribution approach. The 4 x 4 Shop is a large retailer of equipment for pickup trucks. An income statement for the company's Bed Liner Department for the most recent quarter is presented below: The 4 x 4 Shop Income Statement - Liner Department For First Quarter of Curren Year Sales $700,000 250,000 Less: Cost of goods sold Gross margin Less: Operating expenses: Selling expenses Administrative expenses 450,000 $195,000 145,000 340,000 Net income $110,000 The liners sell, on average, for $350 each. The department's variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its liners from a supplier at a cost of $125 per liner. Required: Prepare an income statement for the quarter, using the contribution approach.
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4x4 Shop Income Statement Linear Department Particualrs Amoun... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259024900
9th canadian edition
Authors: Ray Garrison, Theresa Libby, Alan Webb
Posted Date:
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