50.1K

Verified Solution

Link Copied!

The Old Tyme Ice Cream Shoppe sold 8,700 servings of ice cream during June for $5 per serving. The shop purchases the ice cream in large tubs from the Amazing Ice Cream Company. Each tub costs the shop $9 and has enough ice cream to fill 20 ice cream cones. The shop purchases the ice cream cones for $0.25 each from a local warehouse club. Located in an outdoor mall, the rent for the shop space is $1,600 per month. The shop expenses $240 a month for the depreciation of the shop's furniture and equipment. During June, the shop incurred an additional $2,600 of other operating expenses(75% of these were fixed costs).

Requirements

1.	Prepare The Old Tyme Ice Cream Shoppe's June income statement using a traditional format.
2.	Prepare The Old Tyme Ice Cream Shoppe's June income statement using a contribution margin format.

Requirement 1. Prepare The Old Tyme Ice Cream Shoppe's June income statement using a traditional format.

The Old Tyme Ice Cream Shoppe
Income Statement
For the Month Ended June 30
Less:
Less:

Requirement 2. Prepare The Old Tyme Ice Cream Shoppe's June income statement using a contribution margin format.

The Old Tyme Ice Cream Shoppe
Contribution Margin Income Statement
For the Month Ended June 30
Less:
Less:

Answer & Explanation Solved by verified expert

See Answer