Fresh baked cookie company sells cookies in a large

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Fresh Baked Cookie Company sells cookies in a Large shopping mall. The following multiple-step income statement was prepared for the year ending December 31, 2008.

  • Fresh Baked Cookie Company
  • sales $36,000
  • Cost of Goods Sold $ 4,000
  • Gross Profit $32,000
  • Operating Expenses:
  • Sellign Expenses $18,000
  • Administrative Expenses $10,000 $ 28,000
  • Operting Income $4,000

Cost of goods sold is a variable cost. selling ecpense is 20% variable and 80% fixed,and administrative ecpense is 5% variable and 95% fixed.

Reference no: EM13573630

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