Week 2, Income statement.xlsx - Putting Fixed and Variable...

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Putting Fixed and Variable Costs to work in the Income The income statements shown below are NOT for a manufacturing firm; they are for a RETAILER. The retailer in simpler in form and therefore more appropriate for an introduction to the statement. which is used internally because it provides valuable information on fixed and variable costs. Managerial accoun The Contribution or Variable format of income statement is not permitted for external financial reports used by The following information pertains to Furniture R Us, a retailer. Furniture R US buys products from Ergo Eco Furniture Manufacturer, but does not manufacture the product itself. inputted into the yellow cells. Leave the unshaded cells ALONE. Sales info: # Sold Product Sales Price Total Sales 3 Comfy Chair $ 395 $ 1,185.00 3 Stylish Chair $ 335 $ 1,005.00 3 Scooter Chair $ 895 $ 2,685.00 9 Total Sales $ 4,875.00 Variable cost info: Variable Cost of Goods Sold # Sold Cost of chair Total Variable CGS 3 $ 200 $ 600.00 3 $ 165 $ 495.00 3 $ 510 $ 1,530.00 9 Total Costs $ 2,625.00 Variable Selling Expenses # Sold Product Commission 3 Comfy Chair $ 59.25 3 Stylish Chair $ 50.25 3 Scooter Chair $ 134.25 9 Variable Admin Expense Total Sold Admin Exp/Chair Total Var Adm Exp 9 $ 11 $ 99.00 Two types of income statements are shown: The Traditional Format , which is used for external reporting and th Furniture R US is a customer of Ergo Eco Furniture Manufacturer. Data can be The resulting income statements shown at the right. Leave the income statement cells ALONE, too.
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Fixed cost info: Fixed selling expenses $ 250.00 Fixed admin expense $ 120.00
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e Statement. ncome statements are nting's focus is internal. y investors, creditors, IRS, etc. HERE ARE THE TWO TYPES OF INCOME STATEMENTS FURNITURE R US FOR THE PERIOD ENDING XX/XX/XX Sales $ 4,875.00 Cost of Goods Sold 2,625.00 Gross Margin 2,250.00 Selling & Admin Expenses: Selling Exp 981.25 Admin Exp 219.00 1,200.25 NET OPERATING INCOME $ 1,049.75 FURNITURE R US FOR THE PERIOD ENDING XX/XX/XX Sales $ 4,875.00 Variable Expenses: Total Commission Cost of Goods Sold 2,625.00 $ 177.75 Variable Selling Exp 731.25 $ 150.75 Variable Admin Exp 99.00 3,455.25 $ 402.75 $ 731.25 Contribution Margin $ 1,419.75 Fixed Expenses: Fixed Selling Exp 250.00 Fixed Admin Exp 120.00 370.00 NET OPERATING INCOME $ 1,049.75 he
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  • Fall '19
  • Goods Sold, Ergo Eco Furniture Manufacturer

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