Solution
HOME ENTERTAINMENT | ||
Traditional Income Stetement | ||
For the month ending April 30 | ||
Sales revenue | $ 5,31,050.00 | |
Less: Cost of Goods sold | $ 4,08,500.00 | |
Gross Profit | $ 1,22,550.00 | |
Selling and Administrative Expenese | ||
Selling Expenses | ||
Advertising | $ 1,160.00 | |
Sales salaries and Commission | $ 55,905.00 | |
Delivey Expense | $ 11,180.00 | |
Utilities | $ 488.00 | |
Depreciation of sales facility | $ 3,700.00 | |
Total Selling Expenses | $ 72,433.00 | |
Administrative Expenses | ||
Executive Salaries | $ 9,050.00 | |
Insurance | $ 545.00 | |
Clerical | $ 10,300.00 | |
Depreciation- Office Equipment | $ 810.00 | |
Total Administrative expenses | $ 20,705.00 | |
Total Selling and Administrative Expense | $ 93,138.00 | |
Net income | $ 29,412.00 |
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HOME ENTERTAINMENT | ||
Contribution formal Income statement | ||
For the month ending April 30 | ||
Total | Per Piano | |
Sales | $ 5,31,050.00 | $ 2,470.00 |
variable Expenses | ||
Direct material cost | $ 4,08,500.00 | $ 1,900.00 |
Variable Sales salaries and Commission | $ 53,105.00 | $ 247.00 |
Delivery Expenses | $ 11,180.00 | $ 52.00 |
Clerical | $ 8,600.00 | $ 40.00 |
Total Variable Cost | $ 4,81,385.00 | $ 2,239.00 |
Contribution Margin | $ 49,665.00 | $ 231.00 |
Fixed costs | ||
Advertising | $ 1,160.00 | |
Fixed Sales salaries and Commission | $ 2,800.00 | |
Utilities | $ 488.00 | |
Depreciation- Sales Facility | $ 3,700.00 | |
Executive salaries | $ 9,050.00 | |
Insurance | $ 545.00 | |
Clerical fixed cost | $ 1,700.00 | |
Depreciation- Office equipment | $ 810.00 | |
Total Fixed cost | $ 20,253.00 | |
Net Income | $ 29,412.00 |
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
$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 $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
$2,290 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...
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 $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...
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...
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, $1,484 each from the manufacturer. Marwick’s
Pianos, Inc., sells the pianos to its customers at an average price
of $2,600 each. The selling and administrative costs that the
company incurs in a typical month are presented below:
Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on...
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%...