Business, 12.02.2020 02:15 oliviaparker2010

Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 20,000, Selling price per unit $30, Variable selling expense per unit $4, Variable administrative expense per unit $2, Total fixed selling expense $40,000, Total fixed administrative expense $30,000, Beginning merchandise inventory $24,000, Ending merchandise inventory $44,000, Merchandise purchases $180,000. Required1) Prepare a traditional income statement.2 )Prepare a contribution format income statement.

Answers: 2

Show answers

Answers

Answer from: lanlostreyn

Answer and Explanation:

1. Income Statement as on ()

Particular Amount

Sales(20000 x $30) $600,000

Less: COGS $160,000

inventory = $24,000

Less :End inventory = $44,000

Add :purchases $180,000

Gross Profit $440,000

Less: Fixed expenses $70,000

($40,000+$30,000)

$370,000

Less variable Expenses $120,000

(20,000 x $4) = $80,000

(20,000 x $2) = $40,000

Net Profit $250,000

2. Contribution Format Income Statement

Particular Amount

Sales(20000 x $30) $600,000

Less : Variable Expenses

COGS(24000+180000-44000) $160,000

Selling Expenses(20000x$4) $80,000

Administrative exp (20000x$2) $40,000

Contribution $320,000

Less: Fixed Expenses

Selling exp $40,000

Administrative exp $30000

Net Profit $250,000

Answer from: Quest

answer; the above statement/question is ( true);

Answer from: Quest

disadvantages of leasing a vehicle: no vehicle equity and mileage limitations

disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

#plato4lyfe

Another question on Business

Business, 22.06.2019 01:30

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are:

Answers: 3

Answer

Business, 22.06.2019 02:00

4. suppose that pollution in a neighborhood comes from two factories, with marginal benefit curves given by mb1 = 12 – p1 and mb2 = 8 – p2. the level of pollution in the neighborhood is given by p = p1 + p2. the government wants to limit pollution by instituting a pollution-rights market. the government’s desired level of p is 10, so it prints 10 pollution rights and offers them for sale to the firms.a)find the equilibrium selling price of a pollution right, as well as the allocation of rights (and hence pollution levels) across the two factories. b)repeat part (a) for the case where the government’s desired level of pollution equals 14. c)comment on the usefulness of a pollution rights market in achieving efficient levels of pollution abatement.

Answers: 2

Answer

Business, 22.06.2019 18:30

Afarmer is an example of what kind of producer?

Answers: 2

Answer

Business, 23.06.2019 02:30

Do you think it ethical and appropriate for marshall to have used himself as a test subject and swallowed a sample of helicobacter pylori? what precautions did he take? would you do it? why or why not?

Answers: 1

Answer

You know the right answer?

Cherokee Inc. is a merchandiser that provided the following information: Number of units sold 20,000...

Questions