Assignment
J Bryant, Ltd. is a local coat retailer. The store's accountant prepared the following income statement for the month ended January 31.
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Sales revenue
|
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779,000
|
|
Cost of goods sold
|
|
334,500
|
|
Gross margin
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|
444,500
|
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Less operating expenses
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|
|
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Selling expense
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24,720
|
|
|
Administrative expense
|
51,100
|
75,820
|
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Net operating income
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|
368,680
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Bryant 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 5% of sales.
Prepare a contribution format income statement for January.