Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $2,040 each. The average cost of a television from the manufacturer is $1,060.
Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows:
Costs | Cost Formula | ||
Selling: | |||
Advertising | $ | 1,405 | per month |
Delivery of televisions | $ | 48 | per television sold |
Sales salaries and commissions | $ | 3,620 | per month, plus 5% of sales |
Utilities | $ | 442 | per month |
Depreciation of sales facilities | $ | 3,560 | per month |
Administrative: | |||
Executive salaries | $ | 12,450 | per month |
Depreciation of office equipment | $ | 730 | per month |
Clerical | $ | 1,950 | per month, plus $60 per television sold |
Insurance | $ | 830 | per month |
During April, the company sold and delivered 178 televisions.
Required:
1. Prepare an income statement for April using the traditional format with costs organized by function.
2. Prepare an income statement for April, this time using the contribution format with costs organized by behaviour. Show costs and revenues on both a total and a per unit basis down through contribution margin.
Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and...
Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $2,250 each. The average cost of a television from the manufacturer is $1,340. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Costs Cost Formula Selling: Advertising $ 1,135 per month Delivery of televisions $ 45 per television sold...
Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $1,700 each. The average cost of a television from the manufacturer is $1,260. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Cost Formula Costs Selling: Advertising Delivery of televisions Sales salaries and commissions Utilities Depreciation of sales facilities Administrative:...
Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $1,680 each. The average cost of a television from the manufacturer is $1,030. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Costs Cost Formula Selling: Advertising $ 1,045 per month Delivery of televisions $ 50 per television sold...
Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $2,470 each. The average cost of a television from the manufacturer is $1,900. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Cost Formula is it is Costs Selling: Advertising Delivery of televisions Sales salaries and commissions Utilities Depreciation of...
Home Entertainment is a small, family-owned business that
purchases LCD televisions from a reputable manufacturer and sells
them at the retail level. The televisions sell, on average, for
$1,700 each. The average cost of a television from the manufacturer
is $1,260.
Home Entertainment has always kept careful accounting records,
and the costs that it incurs in a typical month are as follows:
Costs
Cost Formula
Selling:
Advertising
$
1,345
per month
Delivery of televisions
$
40
per television sold...
Home Entertainment is a small, family-owned business that
purchases LCD televisions from a reputable manufacturer and sells
them at the retail level. The televisions sell, on average, for
$2,290 each. The average cost of a television from the manufacturer
is $1,400.
Home Entertainment has always kept careful accounting records,
and the costs that it incurs in a typical month are as follows:
Costs
Cost Formula
Selling:
Advertising
$
1,400
per month
Delivery of televisions
$
42
per television sold...
PROBLEM 3-11 Contribution Format versus Traditional Income Statement |LO3 ) Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $1.500 each. The average cost of a television from the manufacturer is $900. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Casts Cost Formula Selling: Advertising $950 per month...
20points ItemSkipped eBook Print References Check my workCheck My Work button is now enabled1 Item 3 Item 3 20 points Item Skipped Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable manufacturer and sells them at the retail level. The televisions sell, on average, for $2,240 each. The average cost of a television from the manufacturer is $1,450. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,500 each from the manufacturer. Marwick’s Pianos, Inc., sells the pianos to its customers at an average price of $3,400 each. The selling and administrative costs that the company incurs in a typical month are presented below: Selling: Advertising $ 954 per month Sales salaries and commissions $ 4,819 per month, plus 5% of sales Delivery of pianos...
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,493 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: Costs Cost Formula Selling: Advertising $ 934 per month Sales salaries and commissions $ 4,791 per month, plus 5% of sales Delivery of pianos to customers $ 57 per piano sold Utilities $ 664 per month...