P6-61A Prepare traditional and contribution margin income statements (Learning Objective 6)

P6-61A Prepare traditional and contribution margin income statements
(Learning Objective 6) The Fantastic Ice Cream Shoppe sold 8,800 servings of ice cream during June for $5 per serving. The shop purchases the ice cream in large tubs from the Deluxe Ice
Cream Company. Each tub costs the shop $14 and has enough ice cream to fill 28 ice
cream cones. The shop purchases the ice cream cones for $0.15 each from a local ware-
house club. The Fantastic Ice Cream Shoppe is located in a strip mall, and rent for the
space is $2,050 per month. The shop expenses $220 a month for the depreciation of the shop’s furniture and equipment. During June, the shop incurred an additional
$2,800 of other operating expenses (75% of these were fixed costs). Requirements
1. Prepare The Fantastic Ice Cream Shoppe’s June income statement using a traditional
format. 2. Prepare The Fantastic Ice Cream Shoppe’s June income statement using a contribu-
tion margin format.

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