Question: Using the data set below, construct Traditional and Contribution Format Income Statements. Why would you use one format over the other? (Leaning on your new-found
| Using the data set below, construct Traditional and Contribution Format Income Statements. | |||||||||
| Why would you use one format over the other? (Leaning on your new-found Word Economy skillset, answer this question in 50 words or less. | |||||||||
| Data Set | |||||||||
| Sales | $27,500 | ||||||||
| Variable costs: | |||||||||
| Cost of goods sold | $6,800 | ||||||||
| Variable selling | $750 | ||||||||
| Variable administrative | $400 | ||||||||
| Fixed costs: | |||||||||
| Fixed selling | $2,350 | Hint | |||||||
| Fixed administrative | $1,825 | I'm looking for two insights. | |||||||
| A. Calculations - 75% of this Spreadsheet Grade | B. Worded Answer(s) - 25% of this Spreadsheet Grade | ||||||||
| Traditional Format Income Statement | Delete this line and write your answers in this box. | ||||||||
| Sales | |||||||||
| Cost of goods sold | |||||||||
| Gross margin | |||||||||
| Selling and administrative expenses: | |||||||||
| Selling | |||||||||
| Administrative | |||||||||
| Net operating income | |||||||||
| Word Limit | Word Count | ||||||||
| 50 | 10 | ||||||||
| Contribution Format Income Statement | |||||||||
| Sales | |||||||||
| Variable expenses: | |||||||||
| Cost of goods sold | |||||||||
| Variable selling | |||||||||
| Variable administration | |||||||||
| Contribution margin | |||||||||
| Fixed expenses: | |||||||||
| Fixed selling | |||||||||
| Fixed administrative | |||||||||
| Net operating income |
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