60.1K

Verified Solution

Link Copied!

E6-38A (similar to) Question Help Great Giraffes is a specialty pet gift shop selling exotic pet-related items online. The shop has no physical location. Results for last year are shown next (Click the icon to view the results.) For internal planning and decision-making purposes, the owner of Great Giraffes would like to translate the company's income statement into the contribution margin format. Since Great Giraffes is online only, all of its cost of goods sold is variable. A large portion of the selling and marketing expenses consists of freight-out charges ($19.000), which were also variable. Only 20% of the remaining selling and marketing expenses and 25% of the website expenses were variable. Of the other operating expenses, 90% were fixed. Based on this information, prepare Great Giraffes contribution margin income statement for last year. Great Giraffes Contribution Margin Income Statement For the Year Ended December 31 Less Less: Choose from any list or enter any number in the input fields and then click Chock Answer i Data Table A B B 1 1 Great Giraffes N Traditional Income Statement (Absorption Costing) 3 For the Year Ended December 31 4 Sales revenue $ 1,014,000 5 Less: Cost of goods sold 671,000 6 Gross profit $ 343,000 8 7 Less operating expenses: Selling and marketing expenses 9 Website maintenance expenses $ 61,000 60,000 10 Other operating expenses 17,800 138,800 11 Operating income $ 204,200 Print Done

Answer & Explanation Solved by verified expert

See Answer