E2-4 Info Required

Cups of coffee served in a week

2000 2100 2200
Fixed $1,200 $1,200 $1,200
Variable $440.00 $462.00 $484.00
Total $1,640 $1,662 $1,684
Avg Cost $0.82 $0.79 $0.77

E2-6
Traditional Format Income Statement
$
Sales (20,000x$30)
Less- COGS:
Merchandising Beginning Merchandiese Inv
Firms' Add: Merchandise Puchase
COGS Cost of Goods Available for Sale
FORMULA Less: Ending Merchandise Inventory
Gross Profit
Less- Selling and Admin Exp:
Selling Expense:
Variable Selling Expense (20,000x$4) $80,000.00
Fixed Selling Expense $40,000.00
Administrative Expense:
Variable Administrative Expense $40,000.00
Fixed Administrative Expense $30,000.00
Total Selling and Administrative Exp
Net Operating Income

Traditional

Sales
Less: Cost of Goods Sold
Gross Profit
Less: Selling and Administrative Expense
Net Operating Income
 $1200 FC $.22 VC/cup

come Statement Contribution Format Income Statement

$ $ $
$600,000.00 Sales (20,000x$30)
Less- Variable Expenses:
$24,000.00 Cost of Goods Sold:
$180,000.00 Beginning Merchandiese Inv $24,000.00
$204,000.00 Add: Merchandise Puchase $180,000.00
$44,000.00 $160,000.00 COGS Cost of Goods Available for Sale $204,000.00
$440,000.00 Less: Ending Merchandise Inventory $44,000.00
Variable Selling Expense
Variable Administrative Expense
Total Variable Expenses
$120,000.00 Contribution Margin
Less- Fixed Expenses:
Fixed Selling Expense
$70,000.00 Fixed Administrative Expense
$190,000.00 Total Fixed Expenses
$250,000.00 Net Operating Income

Sample Contribution Format Income Statement:

*Maximize 100 Sales

*Minimize 60 Less: Variable Expenses COGS, VSE, VAE
40 Contribution Margin
40 Less: Fixed Expenses FSE, FAE
0 Net Operating Income
me Statement
$ $
$600,000.00

$160,000.00
$80,000.00
$40,000.00
$280,000.00
$320,000.00

$40,000.00
$30,000.00
$70,000.00
$250,000.00