Melisa

Income Statement
For the 1 Month
Sales Revenue
Magazine $9,000
Brochure 4,500 $13,500
Cost of Goods Sold 9,490
Gross Margin $4,010
Selling & Administrative
Expense
Distribution Cost $500
Melissa Salary 1,500 $2,000
Operating Income $2,010

*Magazine: $1,80/copy x 5,000 copies = $9,000

*Brochure: $0,45/copy x 10,000 copies = $4,500

*Cost of Goods Sell:

 Direct material cost:

-magazine $2,000
-brochure $800
Total $2,800
 Direct labor cost
-magazine $2,500
-brochure $1,000
Total $3,500
 Overhead cost
-magazine $2,250
-brochure $940
Total $3,190