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Fanelli Corporation, a merchandising company, reported the following results for July:
| | |
| Number of units sold | | 6,200 |
| Selling price per unit | $ | 600 |
| Unit cost of goods sold | $ | 414 |
| Variable selling expense per unit | $ | 52 |
| Total fixed selling expense | $ | 125,700 |
| Variable administrative expense per unit | $ | 30 |
| Total fixed administrative expense | $ | 207,600 |
| |
Cost of goods sold is a variable cost in this company.
Required:
a. Prepare a traditional format income statement for July.
b. Prepare a contribution format income statement for July.
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