Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Amount Total sales revenue $1,421,000 $ $ Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases 490 60 30 2$ $ 390,000 $ 360,000 $ 89,000 $ 109,000 $ 339,000 Required: 1. Prepare a traditional income statement for the quarter ended December 31. Winter Leisure Traditional Income Statement Quarter ended December 31 Selling and administrative expenses: 2. Prepare a contribution format income statement for the quarter ended December 31. Winter Leisure Contribution Format Income Statement Quarter ended December 31 Variable expenses: $ Fixed expenses: $ 3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Contribution per snowboard 4. What would operating income be if only 2,400 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 2,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Winter Leisure is a retailer of snowboards. The information below is for the quarter ended December 31: Amount Total sales revenue $1,421,000 $ $ Selling price per snowboard Variable selling expense per snowboard Variable administrative expense per snowboard Total fixed selling expense Total fixed administrative expense Merchandise inventory, beginning balance Merchandise inventory, ending balance Merchandise purchases 490 60 30 2$ $ 390,000 $ 360,000 $ 89,000 $ 109,000 $ 339,000 Required: 1. Prepare a traditional income statement for the quarter ended December 31. Winter Leisure Traditional Income Statement Quarter ended December 31 Selling and administrative expenses: 2. Prepare a contribution format income statement for the quarter ended December 31. Winter Leisure Contribution Format Income Statement Quarter ended December 31 Variable expenses: $ Fixed expenses: $ 3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Contribution per snowboard 4. What would operating income be if only 2,400 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 2,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)
Expert Answer:
Answer rating: 100% (QA)
a Tradiitional income statement Sales 1421000 Cost of goods sold 89000... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0132928939
7th edition
Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay
Posted Date:
Students also viewed these accounting questions
-
Your client, HillTop, is a retailer of women's clothing. It has increased sales during the holiday season by advertising gift cards for in-store and online use. HillTop has found that gift card...
-
A La Mode Inc. (ALM) is a retailer of women and childrens clothing, with stores across Canada. ALM has been in operation for the past 35 years and is a public company with a year-end of January 31....
-
The Electronics Shack is a retailer of electronics such as cell phones, satellite radios, mp3 players, and high-end LCD and plasma TVs. The Electronics Shack is a large chain with stores in strip...
-
Please graphically demonstrate the effects on the level of prices and the value of money if consumers increase their spending due to stock market boom and therefore make more transactions. On the...
-
Its tempting to claim that once a particular 95 percent confidence interval has been constructed, it includes the unknown population characteristic with a probability of .95. What is wrong with this...
-
How can qualitative research be used to strengthen Nike's image? Which qualitative research technique(s) should be used and why?
-
State the form of the Laplace equation in axisymmetric spherical coordinates. Verify that the following functions satisfy this equation: \[r \cos \theta ; \quad \cos \theta / r^{2}\] A linear...
-
1. In the case, Judge Kaplan dismissed Parmalats lawsuit against Deloitte stating that Parmalat did not show that poor auditing of Parmalat USA was equivalent to fraud. Comment on the judges decision...
-
Suppose that you decide to borrow 15,000 for a new car. You can select one of the following loans, each requiring regular monthly payments. Loan a four year loan at 8%. Loan B6 year loan at 10%. Find...
-
The following information is available for ADT Company, which produces special-order security products and uses a job order costing system. Overhead is applied using a predetermined overhead rate of...
-
Suppose the following information is related to X Corporation: Beta2, risk free rate 0.03, closing market index 107 and opening market index 100. Using capital assets pricing model, the stock...
-
Implement the following program: 1) Define a class Director with two attributes name and numFilms. 2) Define an init function for Director which sets the attribute value via input parameters. 3)...
-
You are writing a python script and need to be able to copy, delete, move, and list files and directories? Which Python module should you use?
-
One airplane carries a charge of -5.0 C and another airplane carries a charge of 1.0 C. The magnitude of the electric force between them is 6.0 10 N. Calculate the distance between these two charged...
-
In the picture below, there are three forces pulling a box. The mass M of the box is 13 kg. Calculate the acceleration of the box with the following information: F1 = 135 N F2 = 28 N F3 = 26 N F1 M...
-
A roofer lifts supplies a height of 23 meters with a hand operated winch. How long would it take him to lift a 291 kg load, if the winch has an efficiency of 65%, and the listed rate at which the...
-
The punishment of an offender is assumed to discourage other potential lawbreakers. Imagine a man who is convicted of the first-degree murder of his mistress. He strangled her in a hotel room and...
-
If the jobs displayed in Table 18.24 are processed using the earliestdue-date rule, what would be the lateness of job C? TABLE 18.24 Processing Times and Due Dates for Five Jobs Job C D E...
-
International standards are intended to provide uniformity, and yet some countries may not adopt IFRS in their entirety. Explain why this may happen.
-
On January 1, 20X3, Rose Corporation purchased 25% of the outstanding shares of Jasmine Corporation at a cost of $150,000. No purchase price discrepancy/fair value adjustment arose in relation to the...
-
Explain the difference in concept between the par-value and the agency approaches to eliminating intercorporate bond holdings.
-
A company expects to receive which of the following benefits when it uses its budgeting process? a. The planning required to develop the budget helps managers foresee and avoid potential problems...
-
A direct materials budget would be used in which of the following types of companies? a. Service b. Merchandising c. Manufacturing d. All of the above
-
A disadvantage to merchants from accepting debit and credit cards would be a. lost sales. b. transaction fees. c. bounced checks. d. longer time to receive cash.
Study smarter with the SolutionInn App