1508 per unit and then sells them to retail Marwicks Pianos

$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 4

Solution

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