Question
Please help! I always to thumbs up, thanks!
Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on th
Required: 1. Prepare an income statement for Marwicks Pianos, Inc., for August. Use the traditional format, with costs organ
2. Prepare an income statement for Marwicks Pianos, Inc., for August, this time using the contribution format, with costs or
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution

Marwick's Pianos Inc
Traditional Income Statement
For the Month of August
Sales revenue $   179,200.00
Less: Cost of Goods sold $       94,720.00
Gross Profit $       84,480.00
Selling and Administrative Expense
Selling Expenses
Advertising $             952.00
Sales salaries and Commission $       13,753.00
Delivery Expense $          4,032.00
Utilities $             664.00
Depreciation of sales facility $          4,937.00
Total Selling Expenses $       24,338.00
Administrative Expenses
Executive Salaries $       13,594.00
Insurance $             701.00
Clerical   $          5,303.00
Depreciation- Office Equipment $             937.00
Total Administrative expenses $       20,535.00
Total Selling and Administrative Expense $       44,873.00
Net income $       39,607.00

.

Marwick's Pianos Inc
Contribution formal Income statement
For the Month of August
Total Per Piano
Sales $    179,200.00 $         2,800.00
variable Expenses
Direct material cost $       94,720.00 $         1,480.00
Variable Sales salaries and Commission $          8,960.00 $             140.00
Delivery Expenses $          4,032.00 $               63.00
Clerical   $          2,816.00 $               44.00
Total Variable Cost $    110,528.00 $         1,727.00
Contribution Margin $       68,672.00 $         1,073.00
Fixed costs
Advertising $             952.00
Fixed Sales salaries and Commission $          4,793.00
Utilities $             664.00
Depreciation- Sales Facility $          4,937.00
Executive salaries $       13,594.00
Insurance $             701.00
Clerical fixed cost $          2,487.00
Depreciation- Office equipment $             937.00
Total Fixed cost $       29,065.00
Net Income $       39,607.00
Add a comment
Know the answer?
Add Answer to:
Please help! I always to thumbs up, thanks! Marwick's Pianos, Inc., purchases pianos from a large...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,519 per...

    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...

    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 $1,511 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 $1,502 per...

    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,...

  • Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level....

    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 $1,495 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 $1,496 per...

    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 $1,500 per...

    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 $1,507 per...

    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 $1,504 per...

    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...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT