The Willowick Ice Cream Shoppe sold 8,700 servings of ice cream during June for $3 per serving. The shop purchases the ice cream in large tubs from the Deluxe Ice Cream Company. Each tub costs the shop $12 and has enough ice cream to fill 30 ice cream cones. The shop purchases the ice cream cones for $0.25 each from a local warehouse club. Located in an outdoor mall, the rent for the shop space is $1,600 per month. The shop expenses $200 a month for the depreciation of the shop's furniture and equipment. During June, the shop incurred an additional $2,600 of other operating expenses (75% of these were fixed costs).
Requirements
1. Prepare the Willowick Ice Cream Shoppe's June income statement using a traditional format.
2. Prepare the Willowick Ice Cream Shoppe's June income statement using a contribution margin format.