Instructions: Review Section 11.1, pgs. 289 - 303 Refer to the Sample Business Plan, pg. 203 Answer the questions for your own business. 3.6 Income Statement for First Year of Operations Completed by 12/18 REVENUE × $ A selling price units sold Gross Sales × $ B selling price units sold Returns x C selling price units returned Net Sales $ D B – C VARIABLE EXPENSES of Goods Sold Materials × $ E cost of materials sold Labor × F cost of units sold Cost of Goods Sold + $ G E F Variable Expenses Commission × $ H cost of commission units sold Packaging × I cost of packaging sold Other × J cost of costs units sold Total Other Variable Expenses + + $ K H I J Total Variable Expenses + $ L G K CONTRIBUTION MARGIN $ M D L – FIXED OPERATING EXPENSES
Instructions: Review Section 11.1, pgs. 289 - 303 Refer to the Sample Business Plan, pg. 203 Answer the questions for your own business. 3.6 Income Statement for First Year of Operations Completed by 12/18 A REVENUE selling price × units sold $ B Gross Sales selling price × units sold $ C Returns selling price x units returned D Net Sales B – C $ VARIABLE EXPENSES of Goods Sold E Materials cost of materials × sold $ F Labor cost of × units sold G Cost of Goods Sold E + F $ Variable Expenses H Commission cost of commission × units sold $ I Packaging cost of packaging × sold J Other cost of costs × units sold K Total Other Variable Expenses H + I + J $ L Total Variable Expenses G + K $ M CONTRIBUTION MARGIN D – L $ FIXED OPERATING EXPENSES
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