Question: fanelli corporation a merchandising company reported the following results for...
Fanelli Corporation, a merchandising company, reported the following results for July:
|Number of units sold||6,900|
|Selling price per unit||$||620|
|Unit cost of goods sold||$||421|
|Variable selling expense per unit||$||55|
|Total fixed selling expense||$||126,400|
|Variable administrative expense per unit||$||34|
|Total fixed administrative expense||$||208,300|
Cost of goods sold is a variable cost in this company.
a. Prepare a traditional format income statement for July.
b. Prepare a contribution format income statement for July.