Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Advertising Sales salaries and commissions Delivery of pianos to customers... Utilities Depreciation of sales facilities. Administrative: Executive salaries $400 per month $700 per month,
Advertising Sales salaries and commissions Delivery of pianos to customers... Utilities Depreciation of sales facilities. Administrative: Executive salaries $400 per month $700 per month, plus 6% of sales $50 per piano sold $250 per month $500 per month $3,900 per month Insurance Clerical Depreciation of office equipment $100 per month $1,200 per month, plus $30 per piano sold $100 per month During November, WestCo sold and delivered 80 pianos. Prepare an income statement for WestCo for November using the contribution margin format, with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through contribution margin. Sales WestCo Income Statement For Month Ended November 30 Variable costs: Cost of goods sold Sales commissions Delivery of pianos to customers. Clerical Total variable costs Contribution margin_ Fixed costs: Advertising Sales salaries Utilities Depreciation of sales facilities Executive salaries Insurance Clerical Depreciation of office equipment Total fixed costs Operating income (loss) Total Per Piano
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started