Question

The Fantastic 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 Golden Ice Cream Company. Each tub costs the shop $15 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 $270 a month for the depreciation of the? shop's furniture and equipment. During? June, the shop incurred an additional $2,000 of other operating expenses (75?% of these were fixed? costs).

Requirements

1.	Prepare The Fantastic Ice Cream? Shoppe's June income statement using a traditional format.
2.	Prepare The Fantastic Ice Cream? Shoppe's June income statement using a contribution margin format.

Answer 1