Question

Plyler Enterprises sells garage doors in Erie, PA and hasprovided the following information:

# of unitssold 15,000

Average sellingprice $25per unit

Variable sellingexpense $5per unit

Variable administrativeexpense $2.50per unit

Fixed sellingexpenses $50,000

Fixed Administrativeexpenses $30,000

Inventory atbeginning $32,000

Inventory atend $50,000

Inventorypurchases $152,000

1. Provide the figures for the TRADITIONAL income statementbelow for Plyler Enterprises (ignore taxes):

Account	Amount	Show Calculations
Sales
Cost of goods sold
Gross margin		Sales less cost of goods sold
Selling expenses
Administrative expenses
Net operating income		Gross margin less Selling and Administrative

2. Provide the figures for the CONTRIBUTION FORMAT incomestatement below for Plyler Enterprises (ignore taxes):

Account	Amount	Show Calculations
Sales
Variable expenses:
Cost of goods sold
Selling expenses
Administrative exp.
Contribution margin		Sales less variable expenses
Fixed expenses:
Selling expenses
Administrative exp.
Net operating income		Sales less variable and fixed expenses