Question

# The Yummy Ice Cream Shoppe sold 9,400 servings of ice cream during June for \$4 per...

The

Yummy

Ice Cream Shoppe sold

9,400

servings of ice cream during June for

\$4

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

\$0.05

each from a local warehouse club. Located in an outdoor​ mall, the rent for the shop space is

\$1,800

per month. The shop expenses

\$240

a month for the depreciation of the​ shop's furniture and equipment. During​ June, the shop incurred an additional

\$2,300

of other operating expenses

​(75​%

of these were fixed​ costs). Read the requirements

LOADING...

.

Requirement 1. Prepare The

Yummy

Ice Cream​ Shoppe's June income statement using a traditional format.

 The Yummy Ice Cream Shoppe Income Statement For the Month Ended June 30 Sales revenue 37600 Less: Cost of goods sold Gross profit Less: Operating expenses Lease expense Depreciation expense Other Operating expenses Operating income

Requirement 2.) Prepare the Yummy Ice Cream shop's June income statement using a contribution margin format.

#### Homework Answers

Answer #1

Contribution Margin Statement

 Particular Amount Amount Sales (9,400 units * \$4 each) \$37,600 Less: Variable cost Cost of good sold \$5,170 Operating expenses (2,300 * 25%) \$575 \$5,745 Contribution Margin \$31,855 Less: Fixed cost Rent \$1,800 Shop expenses \$240 Other operating expenses (2,300 * 75%) \$1,725 \$3,765 Operating profit \$28,090

Cost of good sold per cone = Cost of good sold + Cost of cone = 0.50 + 0.05 = 0.55

Cost of ice cream per cone = \$15/30 = \$0.50

Cost of good sold = Cost per cone * Number of cones

= \$0.55 * 9,400

= \$5,170

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