Variable Costing Income statement
e5A. Vegan, LLC, owns a chain of gourmet vegetarian take-out markets. Vegan's income statement in the traditional reporting format for the month follows.
Vegan, LLC Income statement For the Month
|
Sales
|
$890,000
|
|
Cost of goods sold
|
607,000
|
|
Gross margin
Selling and administrative expenses:
|
$283,000
|
|
Variable
|
(44,500)
|
|
Fixed
|
(72,300)
|
|
Operating income
|
$166,200
|
Total fixed production costs for the month were $140,000. Prepare an income statement for Vegan, LLC, for the month, using the variable costing format.