Title: Mega Bright Window Cleaners' monthly income statement at several levels of activity is as ...
Post by: ceymorebucks24 on Jan 18, 2023
Mega Bright Window Cleaners' monthly income statement at several levels of activity is as follows: | Windows washed | 2,000 | 4,000 | 6,000 | |
| Sales revenue | $3,000 | $6,000 | $9,000 | | Cost of goods sold | 1,200 | 2,400 | 3,600 | | Gross profit | 1,800 | 3,600 | 5,400 | | Operating expenses | | | | | Advertising expense | 500 | 500 | 500 | | Salaries and wages expense | 700 | 900 | 1,100 | | Insurance expense | 200 | 200 | 200 | | Postage expense | 500 | 1,000 | 1,500 | | Total operating expenses | 1,900 | 2,600 | 3,300 | | Operating income | $ (100) | $1,000 | $2,100 |
Required: | a. | Identify each expense as fixed, variable, or mixed. |
| b. | Prepare a contribution margin income statement based on a volume of 5,000 |
windows.
Title: Mega Bright Window Cleaners' monthly income statement at several levels of activity is as ...
Post by: tswinson3 on Jan 18, 2023
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