Lo 4: Prepare a Contribution Income Statement 6-15. Fresh Baked Cookie Comp

Lo 4: Prepare a Contribution Income Statement

6-15. Fresh Baked Cookie Company sells cookies in a Large shopping mall. The following multiple-step income statement was prepared for the year ending December
31 2008.

Fresh Baked Cookie Company

sales $36000

Cost of Goods Sold $ 4000

Gross Profit $32000

Operating Expenses:

Sellign Expenses $18000

Administrative Expenses $10000 $ 28000

Operting Income $4000

Cost of goods sold is a variable cost. selling ecpense is 20% variable and 80% fixedand administrative ecpense is 5% variable and 95% fixed.