Required 1 : | ||
Marwick's Pianos, Inc. | ||
Traditional Income Statement | ||
For the month of August | ||
Sales [ 64 * 3300 ] | 211200 | |
Cost of goods sold [ 64 * 1512 ] | 96768 | |
Gross margin | 114432 | |
Selling and administrative expenses : | ||
Selling expenses : | ||
Advertising | 945 | |
Sales salaries and commission [ 4801 + ( 4% * 211200 ) ] | 13249 | |
Delivery of pianos [ 64 * 62 ] | 3968 | |
Utilities | 661 | |
Depreciation of sales facilities | 5014 | |
Total selling expenses | 23837 | |
Administrative expenses: | ||
Executive salaries | 13543 | |
Insurance | 685 | |
Clerical [ 2485 + ( 64 * 39 ) ] | 4981 | |
Depreciation of office equipment | 931 | |
Total administrative expenses | 20140 | |
Total selling and administrative expenses | 43977 | |
Net operating income | 70455 |
Required 2 : | ||
Marwick's Pianos, Inc. | ||
Contribution format Income Statement | ||
For the month of August | ||
Total | Per piano | |
Sales | 211200 | 3300 |
Variable expenses : | ||
Cost of goods sold | 96768 | 1512 |
Sales commissions [ 211200 * 4% ] | 8448 | 132 |
Delivery of pianos | 3968 | 62 |
Clerical | 2496 | 39 |
Total variable expenses | 111680 | 1745 |
Contribution margin | 99520 | 1555 |
Fixed expenses : | ||
Advertising | 945 | |
Sales salaries | 4801 | |
Utilities | 661 | |
Depreciation of sales facilities | 5014 | |
Executive salaries | 13543 | |
Insurance | 685 | |
Clerical | 2485 | |
Depreciation of office equipment | 931 | |
Total fixed expenses | 29065 | |
Net operating income | 70455 |
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,512 per...
Marwick's Planos, Inc., purchases pianos from a large manufacturer for an average cost of $1,484 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 $931 per month $4,772 per month, plus 6%...
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 $1,495 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 $1,500 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 $1,496 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 $1,520 per unit and then sells them to retail customers for an average price of $3,400 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 Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $968 per month $4,793 per month, plus 5%...
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...
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...