$1,508 per unit and then sells them to retail Marwick\'s Pianos, Inc., purchases
ID: 2606034 • Letter: #
Question
$1,508 per unit and then sells them to retail Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $ customers for an average price of $3,400 each. The company's selling and administrative costs for a typical month are presented below Advertising Sales salaries and coemissions Delivery of pianos to custoners 939 per month 4.817 per month, plus 3t of sales $57 per piano sold $635 per month 4,931 per month uprciat ioa ot ales faci1itles $13,543 per month $683 per sonth $2,501 per month, plus $41 per piano sold Executive salaries Depreciation of ottice equipment During August, Marwick's Pianos, Inc., sold and delivered 64 pianos Required: 1. Prepare a traditional format income statement for August 2. Prepare a contribution format income statement for August Show costs and revenues on both a total and a per unit basis down through contribution margin Complete this question by entering your answers in the tabs below Required 2 Rquired 2 Prepare a traditional format income statement for August. (A "Net operating loss" should be entered as a negative number.) MacBook Ai 20 2 3 4Explanation / Answer
Answer
Sales Revenue
217600
Cost of Goods Sold
96512
Gross Profit
121088
Expenses:
Selling Expenses
Advertising
939
Sales Salaries
11345
Delivery of pianos
3648
Utilities
635
Depreciation
4931
21498
Administrative expenses
Executive Salaries
13543
Insurance
683
Clerical
5125
Depreciation of office Equipment
912
20263
Total expenses
41761
Net Income/(Loss)
79327
Units
per unit
Amount
Sales
64
3400
217600
(Less)Variable Cost
Manufacturing Cost
64
1508
96512
Sales Salaries and Commission
64
102
6528
Delivery
64
57
3648
Clerical
64
41
2624
Total Variable Cost
64
1708
109312
Contribution Margin
64
1692
108288
(Less) Fixed Cost
Advertising
939
Sales Salaries and Commission
4817
Utilities
635
Depreciation of sales facilities
4931
Executive Salaries
13543
Insurance
683
Clerical
2501
Depreciation of office equipment
912
Total Fixed Costs
28961
Net Income/(Loss)
79327
Sales Revenue
217600
Cost of Goods Sold
96512
Gross Profit
121088
Expenses:
Selling Expenses
Advertising
939
Sales Salaries
11345
Delivery of pianos
3648
Utilities
635
Depreciation
4931
21498
Administrative expenses
Executive Salaries
13543
Insurance
683
Clerical
5125
Depreciation of office Equipment
912
20263
Total expenses
41761
Net Income/(Loss)
79327
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.