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Problem 1: Naomi?'s Quilt Shoppe sells homemade Amish quilts. Naomi buys the quilts from local Amish artisans for $290 ?each, and her shop sells them for $490 each. She also pays a sales commission of 8?% of sales revenue to her sales staff. Naomi leases her? country-style shop for $1,300 per month and pays $1,800 per month in payroll costs in addition to the sales commissions. Naomi sold 95 quilts in February. Prepare Naomi?'s traditional income statement and contribution margin income statement for the month.
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