Wippert Corporation, a merchandising company, reported the following results for December:?Sales$2,296,200?Cost of goods sold (all variable)$997,600?Total variable selling expense$86,000?Total fixed selling expense$57,100?Total variable administrative expense$43,000?Total fixed administrative expense$148,100Required:a. Prepare a traditional format income statement for December.b. Prepare a contribution format income statement for December.
What will be an ideal response?
a. Traditional Format Income Statement
| Sales | ? | $2,296,200 |
| Cost of goods sold | ? | 997,600 |
| Gross margin | ? | 1,298,600 |
| Selling and administrative expenses: | ? | ? |
| Selling expense | $143,100 | ? |
| Administrative expense | 191,100 | 334,200 |
| Net operating income | ? | $964,400 |
b. Contribution Format Income Statement
| Sales | ? | $2,296,200 |
| Variable expenses: | ? | ? |
| Cost of goods sold | $997,600 | ? |
| Variable selling expense | 86,000 | ? |
| Variable administrative expense | 43,000 | 1,126,600 |
| Contribution margin | ? | 1,169,600 |
| Fixed expenses: | ? | ? |
| Fixed selling expense | 57,100 | ? |
| Fixed administrative expense | 148,100 | 205,200 |
| Net operating income | ? | $964,400 |
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