Tuesday, 24 July 2012

Haaki Shop, Inc., is a large retailer of surfboards. The company assembled the information shown

Haaki Shop, Inc., is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:

Amount
  Total sales revenue $ 800,000   
  Selling price per surfboard $ 400   
  Variable selling expense per surfboard $ 50   
  Variable administrative expense per surfboard $ 20   
  Total fixed selling expense $ 150,000   
  Total fixed administrative expense $ 120,000   
  Merchandise inventory, beginning balance $ 80,000   
  Merchandise inventory, ending balance $ 100,000   
  Merchandise purchases $ 320,000   


Required:
1.
Prepare a traditional income statement for the quarter ended May 31. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Haaki Shop, Inc.
Traditional Income Statement
  Sales $  
  Cost of goods sold  
      
  Gross margin        
  Selling and administrative expenses:
    Selling expenses $
    Administrative expenses

 

  Net operating income $  




2.
Prepare a contribution format income statement for the quarter ended May 31. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Haaki Shop, Inc.
Contribution Format Income Statement
  Sales $  
  Variable expenses:
     Cost of goods sold $  
     Selling expenses  
     Administrative expenses  


  Contribution margin  
  Fixed expenses:
     Selling expenses  
     Administrative expenses    


  Net operating income $  




3.
What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter? (Omit the "$" sign in your response.)

  Contribution of each surfboard was $  


Explanation: