Solution 1-1:
Traditional Income Statement - Marwick Pianos Inc. | ||
Particulars | Details | Amount |
Sales ($2,600*57) | $148,200.00 | |
Less: Cost of Goods Sold (1483*57) | $84,531.00 | |
Gross Profit | $63,669.00 | |
Sellling Expenses: | ||
Advertising | $942.00 | |
Sales Salaries and Commissions (4811 + 6% of 148200) | $13,703.00 | |
Delivery of Pianos to customers (59*57) | $3,363.00 | |
Utilities | $632.00 | |
Depreciation of Sales Facilities | $5,064.00 | $23,704.00 |
Administrative Expenses: | ||
Executive Salaries | $13,479.00 | |
Insurance | $684.00 | |
Clerical (2534 + 45*57) | $5,099.00 | |
Depreciation of office equipment | $950.00 | $20,212.00 |
Net Income | $19,753.00 |
Solution 1-2:
Contribution margin Income Statement - Marwick Pianos Inc. | ||
Particulars | Per Unit | Total |
Sales | $2,600.00 | $148,200.00 |
Variable Cost: | ||
Purchase Cost | $1,483.00 | $84,531.00 |
Sales Commission | $156.00 | $8,892.00 |
Delivery of Pianos to customers | $59.00 | $3,363.00 |
Clerical Expense | $45.00 | $2,565.00 |
Contribution | $857.00 | $48,849.00 |
Fixed Cost: | ||
Advertising | $942.00 | |
Sales Salaries | $4,811.00 | |
Utilities | $632.00 | |
Depreciation of Sales Facilities | $5,064.00 | |
Executive Salaries | $13,479.00 | |
Insurance | $684.00 | |
Clerical | $2,534.00 | |
Depreciation of office equipment | $950.00 | |
Net Income | $19,753.00 |
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Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,483 per...
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