Traditional income statement | ||
Particular | Amount | Amount |
Sales (60X $3100) | $1,86,000.00 | |
Cost of goods sold (60X $1496) | $89,760.00 | |
Gross Margin | $96,240.00 | |
Less: Selling and administrative expenses | ||
Selling expenses | ||
Advertising | $944.00 | |
Sales
salaries and commissions (4818+186000*4%) |
$12,258.00 | |
Delivery of pianos ($62*60) | $3,720.00 | |
Utilities | $658.00 | |
Depreciation of sales facilities | $5,082.00 | |
total selling expense | $22,662.00 | |
Administrative expenses: | ||
Executive salaries | $13,436.00 | |
insurance | $692.00 | |
Clerical | $5,095.00 | |
Depreciation of office Equipment | $892.00 | |
Total administrative expense | $20,115.00 | |
Net operating income | $53,463.00 |
Cotribution format income statement | ||
total | per unit | |
Sales (a) | $1,86,000.00 | $3,100.00 |
Less: Variable expenses (b) | ||
Sales salaries and commissions | $7,440.00 | $124.00 |
Delvery of pianos | $3,720.00 | $62.00 |
Clercial | $2,640.00 | $44.00 |
cost of goods sold | $89,760.00 | $1,496.00 |
total variable expense | $1,03,560.00 | $1,719.00 |
Contribution margin (a-b) | $82,440.00 | $1,381.00 |
Fixed expenses ( C) | ||
Advertising | $944.00 | |
Sales salries and commissions | $4,818.00 | |
utilities | $658.00 | |
Depreciation of office equipment | $892.00 | |
Depreciation of sales facilities | $5,082.00 | |
Exceutive salaries | $13,436.00 | |
insurance | $692.00 | |
clercial | $2,455.00 | |
Total fixed expense | $28,977.00 | |
Net Operating Income | $53,463.00 |
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 $1,495 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 $1,504 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 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 $1,500 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 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 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 $1.483 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...
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 $3,200 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 equipnent $957 per month $4,773 per month, plus 5%...
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%...