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pduvin pduvin
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6 years ago
Harry's Electronics manufactures electronic parts. Data for two of the company's customers is as follows:
    Customer 1   Customer 2
Revenues at list price    $220,000   $220,000
Units sold   40,000   50,000
Unit list price     $5.50   $4.40
Cost of goods per unit    $2.90   $2.90
Sales discounts     20,000   30,000
Customer-specific costs
Order-taking    $1,800   $2,250
Product-handling     $14,000   $17,500
Delivery     $4,200   $5,250

Required:
Prepare a comparative income statement in gross margin format with one column for each customer. Present customer-specific costs as period expenses.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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Replies
wrote...
6 years ago
Customer 1     Customer 2
Revenues at list price    $220,000   $220,000
Discounts     20,000    30,000
Net revenues     $200,000   $190,000
Cost of goods   116,000   145,000
Gross margin     $84,000   $45,000
Customer-specific costs
Order-taking     $1,800   $2,250
Product-handling       $14,000   $17,500
Delivery             $4,200   $5,250
Customer-specific contribution    $64,000   $20,000
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