Bauman Sales Corporation, a merchandising company, reported total sales of $4,069,800 for November. The cost of goods sold (all variable) was $2,351,100, the total variable selling expense was $204,000, the total fixed selling expense was $117,700, the total variable administrative expense was $102,000, and the total fixed administrative expense was $267,000.Required:a. Prepare a contribution format income statement for November.b. Prepare a traditional format income statement for November.
What will be an ideal response?
a. Contribution Format Income Statement
| Sales | ? | $4,069,800 |
| Variable expenses: | ? | ? |
| Cost of goods sold | $2,351,100 | ? |
| Variable selling expense | 204,000 | ? |
| Variable administrative expense | 102,000 | 2,657,100 |
| Contribution margin | ? | 1,412,700 |
| Fixed expenses: | ? | ? |
| Fixed selling expense | 117,700 | ? |
| Fixed administrative expense | 267,000 | 384,700 |
| Net operating income | ? | $1,028,000 |
b. Traditional Format Income Statement
| Sales | ? | $4,069,800 |
| Cost of goods sold | ? | 2,351,100 |
| Gross margin | ? | 1,718,700 |
| Selling and administrative expenses: | ? | ? |
| Selling expense | $321,700 | ? |
| Administrative expense | 369,000 | 690,700 |
| Net operating income | ? | $1,028,000 |
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