J Bryson, Ltd.is a local coat retailer.The store's accountant prepared the following income statement for the month ended January 31. Bryson sells its coats for $250 each.Selling expenses consist of fixed costs plus a commission of $6.50 per coat.Administrative expenses consist of fixed costs plus a variable component equal to 6% of sales.
Required:
a.Prepare a contribution format income statement for January.
b.Using the format y = mx + b, develop a cost formula for the operating expenses.
c.If 2,700 coats are sold next month, what is the expected total contribution margin?

Question

J Bryson, Ltd.is a local coat retailer.The store's accountant prepared the following income statement for the month ended January 31.  Bryson sells its coats for $250 each.Selling expenses consist of fixed costs plus a commission of $6.50 per coat.Administrative expenses consist of fixed costs plus a variable component equal to 6% of sales.
Required: 
a.Prepare a contribution format income statement for January.
b.Using the format y = mx + b, develop a cost formula for the operating expenses.
c.If 2,700 coats are sold next month, what is the expected total contribution margin?

Quizplus · Accepted Answer

The Answer of J Bryson, Ltd.is a local coat retailer.The store's accountant prepared the following income statement for the month ended January 31.  Bryson sells its coats for $250 each.Selling expenses consist of fixed costs plus a commission of $6.50 per coat.Administrative expenses consist of fixed costs plus a variable component equal to 6% of sales.
Required: 
a.Prepare a contribution format income statement for January.
b.Using the format y = mx + b, develop a cost formula for the operating expenses.
c.If 2,700 coats are sold next month, what is the expected total contribution margin?