Question

Sales	$2,296,200
Cost of goods sold (all variable)	$997,600
Total variable selling expense	$86,000
Total fixed selling expense	$57,100
Total variable administrative expense	$43,000
Total fixed administrative expense	$148,100

Prepare a contribution format income statement for December

prepare a traditional format income statement for december

Answer 1

It is basic knowledge that Contribution is nothing but Sales- variable Cost. From the informations given below

A Sales	$2,296,200
B Less: COGS	$997,600
C Less: Variable selling expense	$86,000
D Less: Variable administrative expense	$ 43,000
E Contribution [A-B-C-D]	$1,169,600
F Less: Fixed Selling Expense	$57,100
G Less: Fixed Administrative expense	$ 148,100
H Profit [E-F-G]	$964,400

TRADITIONAL INCOME STATEMENT

A Sales	$2,296,200
B Less: COGS	$997,600
C Less: Variable selling expense	$86,000
D Less: Variable administrative expense	$ 43,000
F Less: Fixed Selling Expense	$57,100
G Less: Fixed Administrative expense	$ 148,100
H Profit [E-F-G]	$964,400