1) Weingartner Corporation, a merchandising company, reported sales of 4,800 uni

Question

1) Weingartner Corporation, a merchandising company, reported sales of 4,800 units for July at a selling price of $269 per unit. The cost of goods sold (all variable) was $114 per unit and the variable selling expense was $6 per unit. The total fixed selling expense was $38,100. The variable administrative expense was $14 per unit and the total fixed administrative expense was S59,900. Required: a. Prepare a contribution format income statement for July. b. Prepare a traditional format income statement for July ahs fr Jung 4180 units uimi

Explanation / Answer

a. Contribution Format Income Statement

b. Traditional Format Income Statement

Sales (4,800 units × $269 per unit) $1,291,200 Variable expenses: Cost of goods sold (4,800 units × $114 per unit) $547,200 Variable selling expense (4,800 units × $6 per unit) $28,800 Variable administrative expense (4,800 units × $14 per unit) $67,200 $643,200 Contribution margin $648,000 Fixed expenses: Fixed selling expense $38,100 Fixed administrative expense $59,900 $98,000 Net operating income $550,000

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