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    Haaki Shop, Inc. traditional & contribution margin format

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    Haaki Shop, Inc., is a large retailer of surfboards. The company assembled the information shown below for the quarter ended May 31:

    Amount
    Total sales revenue $ 1,364,000
    Selling price per surfboard $ 440
    Variable selling expense per surfboard $ 47
    Variable administrative expense per surfboard $ 18
    Total fixed selling expense $ 145,000
    Total fixed administrative expense $ 115,000
    Merchandise inventory, beginning balance $ 75,000
    Merchandise inventory, ending balance $ 105,000
    Merchandise purchases $ 280,000
    ________________________________________

    Required:
    1. Prepare a traditional income statement for the quarter ended May 31. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

    2. Prepare a contribution format income statement for the quarter ended May 31. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

    3.What was the contribution toward fixed expenses and profits for each surfboard sold during the quarter? (Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)

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    https://brainmass.com/business/accounting/haaki-shop-inc-traditional-contribution-margin-format-452755

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    Solution Summary

    Your traditional and contribution margin income statements are shown in excel (click in cells to see computations). I have also shown you how to solve for Cost of Goods Sold. The contribution margin per unit is also revealed.

    $2.19

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