Debby's Gift Baskets sells gift baskets,on average,for $100.Each gift basket costs,on average,$55.Debby pays salaries each month of $1,500,and her store rent is $1,000 per month.She also pays sales commissions of 10% of the sales price.In May,150 gift baskets were sold.
Required:
a.Prepare a traditional income statement for the month of May.
b.Prepare a contribution margin income statement for the month of May.

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The Answer of  Debby's Gift Baskets sells gift baskets,on average,for $100.Each gift basket costs,on average,$55.Debby pays salaries each month of $1,500,and her store rent is $1,000 per month.She also pays sales commissions of 10% of the sales price.In May,150 gift baskets were sold.
Required:
a.Prepare a traditional income statement for the month of May.
b.Prepare a contribution margin income statement for the month of May.

Debby's Gift Baskets Sells Gift Baskets,on Average,for $100