1)
MARWICK'S PIANOS INC TRADITIONAL FORMAT INCOME STATEMENT FOR THE MONTH ENDED AUGUST |
||
Sales revenue (61*3400) | 207400 | |
less:Cost of goods sold (61*1520) | 92720 | |
Gross margin | 114680 | |
Less:selling and administrative expense | ||
Selling expense | ||
Advertising | 968 | |
sales salaries and commissions [4793+ (207400*5%)] | 15163 | |
Delivery of pianos to customers (62*61)` | 3782 | |
Utilities | 646 | |
Depreciation of sales facilities | 5041 | |
Total selling expense | 25600 | |
Administrative expense | ||
Executive salaries | 13551 | |
Insurance | 714 | |
Clerical [2511+ (38*61)] | 4829 | |
Depreciation of office equipment | 879 | |
Total administrative expense | 19973 | |
Total selling and administrative expense | 45573 | |
Net operating income | 69107 |
b)
MARWICK'S PIANOS INC CONTRIBUTION MARGIN INCOME STATEMENT FOR THE MONTH ENDED AUGUST |
||
Sales revenue (61*3400) | 3400 | 207400 |
lesS:variable expense | ||
Cost of sales | 1520 | 92720 |
sales salaries and commissions | 3400*5%=170 | 10370 |
Delivery of pianos to customers | 62 | 3782 |
Clerical | 38 | 2318 |
Total variable cost | 1790 | 109190 |
Total contribution margin | 1610 | 98210 |
Fixed cost | ||
Advertising | 968 | |
sales salaries and commissions | 4793 | |
Utilities | 646 | |
Depreciation of sales facilities | 5041 | |
Executive salaries | 13551 | |
Insurance | 714 | |
Clerical | 2511 | |
Depreciation of office equipment | 879 | |
Total fixed cost | 29103 | |
Net operating income | 69107 |
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,520 per...
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 $1,500 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 Pisnos, Inc., purchases pianos from a large manufacturer for an average cost of $1,520 per unit and then sells them to retail customers for an average price of $2.800 esch. The company's selling and administrative costs for a typical month are presented below: Cost Formula Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries $957 per month $4,773 per month, plus 5% of sales $61 per piano sold $668...
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 $1,504 per unit and then sells them to retail customers for an average price of $2,100 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 $968 per month $4,811 per month, plus 4% of sales $59 per piano sold $666 per month...
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 $1,496 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 $1499 per unit and then sells them to retail customers for an average price of $3,300 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 $951 per month $4,811 per month, plus 4%...
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,510 per unit and then sells them to retail customers for an average price of $2,700 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 $967 per month $4,805 per month, plus 6%...
Marwick's Pianos, Inc, purchases pianos from a large manufacturer for an average cost of $2.450 per unit and then sells them to retail customers for an average price of $3,125 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 $700 per month $950 per month, plus 8% of sales $30 per piano sold $350 per month...