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.