This preview shows page 1. Sign up to view the full content.
Unformatted text preview: ncome statement for Fast Track Inc. for the year ended December
31st, 2009 (please ignore income tax). (15 points) 4 B. Prepare a statement of shareholders equity for Fast Track Inc. for the year
ended December 31st, 2009. (5 points) C. Suppose Fast Track Inc. is currently considering opening another branch. Is
the information in the income statement enough for helping the company to
make the decision of expansion? Why or Why not? Please provide answer on
page 6, which is intentionally left blank. (5 points) 5 Q u es t i o n 3 :
(a) What is the difference between fixed cost and variable cost? Provide three
examples each for fixed and variable cost and explain why those costs are fixed or
variable. (15 points) (b) Whitman Corporation, a merchandising company, reported sales of 7,400
units for May 2011 at a selling price of $677 per unit. The cost of goods sold (all
variable) was $441 per unit and the variable selling expense was $54 per unit. The
total fixed selling expense was $155,600. The variable administrative expense
was $24 per unit and the total fixed administrative expense was $370,400.
Prepare a contribution format income statement for September 2011 and be sure
to include the contribution margin in the statement (10 points). 6...
View Full Document
This note was uploaded on 11/01/2013 for the course BUS 70-122 taught by Professor Sunez during the Fall '11 term at Carnegie Mellon.
- Fall '11