Casual seating company is currently selling 2,000 oversized bean bag chairs a month at a price of $85 per chair. the variable cost of each chair sold includes $60 to purchase the bean bag chairs from suppliers and a $4 sales commission. fixed costs are $ 10,000 per month. the company is considering making several operational changes and wants to know how the change will impact its operating income.
required.
prepare the company's current contribution margin income statement. (use parentheses or a minus sign for an operating loss.)

Johnson company uses the allowance method to account for uncollectible accounts receivable. bad debt expense is established as a percentage of credit sales. for 2018, net credit sales totaled $6,400,000, and the estimated bad debt percentage is 1.40%. the allowance for uncollectible accounts had a credit balance of $61,000 at the beginning of 2018 and $49,500, after adjusting entries, at the end of 2018.required: 1. what is bad debt expense for 2018 as a percent of net credit sales? 2. assume johnson makes no other adjustment of bad debt expense during 2018. determine the amount of accounts receivable written off during 2018.3. if the company uses the direct write-off method, what would bad debt expense be for 2018?