The Sundae Ice Cream Shoppe sold 9,100 servings of ice cream during June for $3

Question

The Sundae Ice Cream Shoppe sold 9,100 servings of ice cream during June for $3 per serving. The shop purchases the ice cream in large tubs from the Creamy Ice Cream Company. Each tub costs the shop $7 and has enough ice cream to fill 20 ice cream cones. The shop purchases the ice cream cones for $O.05 each from a local warehouse club. Located in an outdoor mall, the rent for the shop space is $2.050 per month. The shop expenses $280 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 Sundae Ice Cream Shoppe's June income statement using a traditional format 2. Prepare The Sundae Ice Cream Shoppe's June income statement using a contribution margin format.

Explanation / Answer

1

2

Operating income is $19,330

Particulars Amount Amount Sales revenue 27,300.00 Less cost of goods sold    3,640.00 Gross profit 23,660.00 Less operating expenses Lease expense 2,050.00 Depreciation     280.00 Other operating expensess 2,000.00    4,330.00 Operating income 19,330.00 Cost of goods sold Per unit Total Ice cream tub          0.35    3,185.00 Ice cream cone          0.05        455.00 Total          0.40    3,640.00

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