Solved

J Bryson,Ltd

Question 162

Essay

J Bryson,Ltd.is a local coat retailer.The store's accountant prepared the following income statement for the month ended January 31.
J Bryson,Ltd.is a local coat retailer.The store's accountant prepared the following income statement for the month ended January 31. Bryson sells its coats for $250 each.Selling expenses consist of fixed costs plus a commission of $6.50 per coat.Administrative expenses consist of fixed costs plus a variable component equal to 6% of sales. Required: a.Prepare a contribution format income statement for January. b.Using the format y = mx + b,develop a cost formula for the operating expenses. c.If 2,700 coats are sold next month,what is the expected total contribution margin?
Bryson sells its coats for $250 each.Selling expenses consist of fixed costs plus a commission of $6.50 per coat.Administrative expenses consist of fixed costs plus a variable component equal to 6% of sales.
Required:
a.Prepare a contribution format income statement for January.
b.Using the format y = mx + b,develop a cost formula for the operating expenses.
c.If 2,700 coats are sold next month,what is the expected total contribution margin?

Correct Answer:

verifed

Verified

a.coats sold = $750,000 / $250 = 3,000 u...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q17: With a variable cost, as the level

Q58: Any cost that varies in proportion to

Q67: GAAP-based income statements categorize expenses based on

Q157: Determine the fixed cost given the following

Q158: Georgiana operates a nail salon.She is trying

Q159: Complete each of the following contribution format

Q161: When a manager talks about cost behavior,she

Q164: Express the relationship between total cost TC,variable

Q166: To calculate the unit cost of the

Q167: If an organization wants to make a