Solution
HOME ENTERTAINMENT | ||
Contribution formal Income statement | ||
For the month ending April 30 | ||
Total | Per Piano | |
Sales | $ 351,900.00 | $ 1,700.00 |
variable Expenses | ||
Direct material cost | $ 260,820.00 | $ 1,260.00 |
Variable Sales salaries and Commission | $ 7,038.00 | $ 34.00 |
Delivery Expenses | $ 8,280.00 | $ 40.00 |
Clerical | $ 828.00 | $ 4.00 |
Total Variable Cost | $ 276,966.00 | $ 1,338.00 |
Contribution Margin | $ 74,934.00 | $ 362.00 |
Fixed costs | ||
Advertising | $ 1,345.00 | |
Fixed Sales salaries and Commission | $ 3,320.00 | |
Utilities | $ 422.00 | |
Depreciation- Sales Facility | $ 3,830.00 | |
Executive salaries | $ 8,750.00 | |
Insurance | $ 520.00 | |
Clerical fixed cost | $ 1,530.00 | |
Depreciation- Office equipment | $ 860.00 | |
Total Fixed cost | $ 20,577.00 | |
Net Income | $ 54,357.00 |
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 $2,470 each. The average cost of a television from the manufacturer is $1,900. Home Entertainment has always kept careful accounting records, and the costs that it incurs in a typical month are as follows: Cost Formula is it is Costs Selling: Advertising Delivery of televisions Sales salaries and commissions Utilities Depreciation of...
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 $2,040 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...
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...
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 for an average cost of $1,493 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: Costs Cost Formula Selling: Advertising $ 934 per month Sales salaries and commissions $ 4,791 per month, plus 5% of sales Delivery of pianos to customers $ 57 per piano sold Utilities $ 664 per month...
Marwick's Pianos, Ic., 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 $967 per month $4,823 per month, plus 3% of sales $60 per piano sold $657 per month $5,017 per month Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation...