do you include variable selling and administrativeexpenses in total variable expenses?
do you include variable selling and administrativeexpenses in total variable expenses?
Related questions
Plyler Enterprises sells garage doors in Erie, PA and hasprovided the following information:
# of unitssold 15,000
Average sellingprice $25per unit
Variable sellingexpense $5per unit
Variable administrativeexpense $2.50per unit
Fixed sellingexpenses $50,000
Fixed Administrativeexpenses $30,000
Inventory atbeginning $32,000
Inventory atend $50,000
Inventorypurchases $152,000
1. Provide the figures for the TRADITIONAL income statementbelow for Plyler Enterprises (ignore taxes):
Account | Amount | Show Calculations |
Sales | ||
Cost of goods sold | ||
Gross margin | Sales less cost of goods sold | |
Selling expenses | ||
Administrative expenses | ||
Net operating income | Gross margin less Selling and Administrative |
2. Provide the figures for the CONTRIBUTION FORMAT incomestatement below for Plyler Enterprises (ignore taxes):
Account | Amount | Show Calculations |
Sales | ||
Variable expenses: | ||
Cost of goods sold | ||
Selling expenses | ||
Administrative exp. | ||
Contribution margin | Sales less variable expenses | |
Fixed expenses: | ||
Selling expenses | ||
Administrative exp. | ||
Net operating income | Sales less variable and fixed expenses | |
