Reference no: EM13573630

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.