Herrera,Inc

question 10

Essay

Herrera,Inc. ,a merchandiser,sells office supplies.The following information summarizes Herrera's operating activities during the year:

Required: Prepare an income statement for Herrera,Inc.for the year ended December 31,using the format below.Include a proper heading.

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Definitions:

Fixed Costs

Stable costs encompassing rent, salaries, and insurance, unaffected by variations in production or sales levels.

Break-Even

The point where overall expenses match overall income, leading to neither a profit nor a loss.

Variable Costs

Expenditures that adjust according to the quantity of goods or services produced by an enterprise.

Fixed Costs

Regular outgoings that stay the same whether production or sales rates increase or decrease, for instance, rental costs or salary payments.