Required 1 : | ||
Marwick's Pianos, Inc. | ||
Traditional Income Statement | ||
For the month of August | ||
Sales [ 65 * 3200 ] | 208000 | |
Cost of goods sold [ 65 * 1511 ] | 98215 | |
Gross margin | 109785 | |
Selling and administrative expenses : | ||
Selling expenses : | ||
Advertising | 957 | |
Sales salaries and commission [ 4773 + ( 5% * 208000 ) ] | 15173 | |
Delivery of pianos [ 65 * 58 ] | 3770 | |
Utilities | 663 | |
Depreciation of sales facilities | 4968 | |
Total selling expenses | 25531 | |
Administrative expenses: | ||
Executive salaries | 13568 | |
Insurance | 693 | |
Clerical [ 2491 + ( 65 * 36 ) ] | 4831 | |
Depreciation of office equipment | 915 | |
Total administrative expenses | 20007 | |
Total selling and administrative expenses | 45538 | |
Net operating income | 64247 |
Required 2 : | ||
Marwick's Pianos, Inc. | ||
Contribution format Income Statement | ||
For the month of August | ||
Total | Per piano | |
Sales | 208000 | 3200 |
Variable expenses : | ||
Cost of goods sold | 98215 | 1511 |
Sales commissions [ 208000 * 5% ] | 10400 | 160 |
Delivery of pianos | 3770 | 58 |
Clerical | 2340 | 36 |
Total variable expenses | 114725 | 1765 |
Contribution margin | 93275 | 1435 |
Fixed expenses : | ||
Advertising | 957 | |
Sales salaries | 4773 | |
Utilities | 663 | |
Depreciation of sales facilities | 4968 | |
Executive salaries | 13568 | |
Insurance | 693 | |
Clerical | 2491 | |
Depreciation of office equipment | 915 | |
Total fixed expenses | 29028 | |
Net operating income | 64247 |
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,511 per...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,511 per unit and then sells them to retail customers for an average price of $2,600 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $964 per month $4,786 per month, plus 4%...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,495 per unit and then sells them to retail customers for an average price of $2,500 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $939 per month $4,777 per month, plus 6%...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,519 per unit and then sells them to retail customers for an average price of $2,600 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance clerical Depreciation of office equipment $933 per month $ 4,810 per month, plus...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,504 per unit and then sells them to retail customers for an average price of $2.400 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities $969 per month $4,795 per month, plus 5% of sales $57 per piano sold $640 per month...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,507 per unit and then sells them to retail customers for an average price of $3,500 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance clerical Depreciation of office equipment $943 per month $ 4,802 per month, plus...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,500 per unit and then sells them to retail customers for an average price of $2,000 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $966 per month $4,804 per month, plus 5%...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,496 per unit and then sells them to retail customers for an average price of $3,100 each. The company's selling and administrative costs for a typical month are presented below: Costs Selling: Cost Formula Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities $944 per month 4,818 per month, plus 4% of sales $62 per piano sold $658 per month...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1.483 per unit and then sells them to retail customers for an average price of $2,600 esch. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries $953 per month $4,813 per month, plus 4% of sales $62 per piano sold...
Marwick's Pianos, Ic., purchases pianos from a large manufacturer for an average cost of $1,511 per unit and then sells them to retail customers for an average price of $2,600 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising $967 per month $4,823 per month, plus 3% of sales $60 per piano sold $657 per month $5,017 per month Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,502 per unit and then sells them to retail customers for an average price of $3,000 each. The company's selling and administrative costs for a typical month are presented below: Dints Cost Formula eBook Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $953 per month $4,794 per month,...