Reference no: EM133110201

Question - Karen's Ice Cream Shoppe sold 9,100 servings of ice cream during June for $2 per serving. Karen purchases the ice cream in large tubs from the Creamy Ice Cream Company. Each tub costs Karen $18 and has enough ice cream to fill 40 ice cream cones. Karen purchases the ice cream cones for $0.15 each from a local warehouse club. Karen's Shoppe is located in a local strip mall, and she pays $2,200 a month to lease the space. Karen expenses $300 a month for the depreciation of the shop's furniture and equipment. During June, Karen incurred an additional $3,400 of other operating expenses (75% of these were fixed costs).

Required -

1. Prepare Karen's June income statement using a traditional format.

2. Prepare Karen's June income statement using a contribution margin format.