Fresh Baked Cookie Company sells cookies in a Large shopping mall. The following multiple-step income statement was prepared for the year ending December 31, 2008.
- Fresh Baked Cookie Company
- sales $36,000
- Cost of Goods Sold $ 4,000
- Gross Profit $32,000
- Operating Expenses:
- Sellign Expenses $18,000
- Administrative Expenses $10,000 $ 28,000
- Operting Income $4,000
Cost of goods sold is a variable cost. selling ecpense is 20% variable and 80% fixed,and administrative ecpense is 5% variable and 95% fixed.