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Hello, can you me with how to find sales commissions on this problem. see attachment. could you please show your work, so i will know
Hello, can you me with how to find sales commissions on this problem. see attachment. could you please show your work, so i will know how to work the problem in later.
thanks
House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The costs that the company incurs in a typical month are presented below. Costs Selling: Advertising Delivery of organs Sales salaries and commissions Utilities Depreciation of sales facilities Administrative: Executive salaries Depreciation of office equipment Clerical Insurance Cost Formulas $901 $62 $4,864 $605 $4,966 $13,863 $959 $2,424 $738 per month per organ sold per month, plus per month per month per month per month per month, plus per month Additional information Average Sales price: $2,234 Average cost of an organ from the manufacturer: $1,546 Number of organs sold and delivered during November: 67 2. Prepare a contribution format income statement for November. Show costs and revenues on both a total and a per unit basis down through contribution margin. House of Organs, Inc. Contribution Format Income Statement For the Month Ended November 30 Total Per Unit Sales $149,664 $2,233.80 Variable expenses: Cost of goods sold $103,576 $1,545.91 Delivery of organs $4,141 $61.80 Sales commissions $7,344 Clerical $3,982 $59.44 Total variable expenses $119,043 Contribution margin $30,621 Fixed expenses: Advertising $901 Sales salaries $4,864 4.9% of sales $59 per organ sold Utilities Depreciation of sales facilities Executive salaries Depreciation of office equipment Clerical Insurance Total fixed expenses Net operating income $605 $4,966 $13,863 $959 $2,424 $738 $29,321 $1,301Step by Step Solution
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