Solution
Marwick's Pianos Inc | ||
Traditional Income Statement | ||
For the Month of August | ||
Sales revenue | $ 1,98,400.00 | |
Less: Cost of Goods sold | $ 96,192.00 | |
Gross Profit | $ 1,02,208.00 | |
Selling and Administrative Expenese | ||
Selling Expenses | ||
Advertising | $ 957.00 | |
Sales salaries and Commission | $ 14,728.00 | |
Delivery Expense | $ 3,648.00* | |
Utilities | $ 641.00 | |
Depreciation of sales facility | $ 4,917.00 | |
Total Selling Expenses | $ 24,891.00 | |
Administrative Expenses | ||
Executive Salaries | $ 13,506.00 | |
Insurance | $ 715.00 | |
Clerical | $ 5,006.00 | |
Depreciation- Office Equipment | $ 899.00 | |
Total Administrative expenses | $ 20,126.00 | |
Total Selling and Administrative Expense | $ 45,017.00 | |
Net income | $ 57,191.00 |
*Delivery expense=64 x $57
Marwick's Pianos Inc | ||
Contribution formal Income statement | ||
For the Month of August | ||
Total | Per Piano | |
Sales | $ 1,98,400.00 | $ 3,100.00 |
variable Expenses | ||
Direct material cost | $ 96,192.00 | $ 1,503.00 |
Variable Sales salaries and Commission | $ 9,920.00 | $ 155.00 |
Delivery Expenses | $ 3,648.00 | $ 57.00 |
Clerical | $ 2,496.00 | $ 39.00 |
Total Variable Cost | $ 1,12,256.00 | $ 1,754.00 |
Contribution Margin | $ 86,144.00 | $ 1,346.00 |
Fixed costs | ||
Advertising | $ 957.00 | |
Fixed Sales salaries and Commission | $ 4,808.00 | |
Utilities | $ 641.00 | |
Depreciation- Sales Facility | $ 4,917.00 | |
Executive salaries | $ 13,506.00 | |
Insurance | $ 715.00 | |
Clerical fixed cost | $ 2,510.00 | |
Depreciation- Office equipment | $ 899.00 | |
Total Fixed cost | $ 28,953.00 | |
Net Income | $ 57,191.00 |
Marwick's Planos, Inc., purchases pianos from a large manufacturer for an average cost of $1,503 per...
Marwick's Pianos, Inc. purchases planos from a large manufacturer for an average cost of $1,514 per unit and then sells them to retail customers for an average price of $2,300 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 $942 per month $4,822 per month, plus 48...
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 $1,511 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 $1,504 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 Planos, Inc., purchases planos from a large manufacturer for an average cost of $1,481 per unit and then sells them to retail customers for an average price of $2,900 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 $938 per month $4,829 per month, plus 48...
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...