To aid in planning, Jay Corporation's Q1 of Year 3 Contribution Format Income Statement Preparation
Budgeted Information for Quarter 1 of Year 3:
Sales: 17,000 units sold
Sales Price per Unit: $48.00
Cost Patterns:
Cost of Goods Sold: $29.00 per unit, 9.50% per dollar of sales
Sales Commissions: 9.50% of total revenues
Administrative Salaries: $45,000.00 per quarter
Rent Expense: $36,000.00 per quarter
Depreciation Expense
Management has concluded that shipping expense is a mixed cost. Units shipped and the related shipping cost over the last eight quarters are:
Year 1 Total Shipping Cost | Units | |
Quarter 1 | $67,000.00 | 12,500 |
Quarter 2 | $94,000.00 | 21,000 |
Quarter 3 | $89,800.00 | 13,800 |
Quarter 4 | $92,600.00 | 20,000 |