Sales in units Frankel Ltd. Comparative Income Statements For the Three Months Ended June 30 Sales revenue Cost of goods sold Gross margin April 3,000 May June 3,750 4,500 £ 420,000 £525,000 £ 630,000 168,000 210,000 252,000 252,000 315,000 378,000 Selling and administrative expenses: Shipping expense 44,000 50,000 56,000 Advertising expense 70,000 70,000 70,000 Salaries and commissions 107,000 125,000 143,000 Insurance expense 9,000 9,000 9,000 Depreciation expense 42,000 42,000 42,000 Total selling and administrative expenses 272,000 296,000 320,000 Net operating income (loss) £ (20,000) £ 19,000 £ 58,000 Expenses Classification Cost of goods sold Shipping expense Advertising expense Salaries and commissions Insurance expense Depreciation expense Variable Cost Fixed Cost Formula per unit Y = + per unit per unit Y = + per unit Frankel Ltd. Contribution Format Income Statement For the Month Ended June 30 Variable expenses: Fixed expenses: