Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,502 per unit and then sells them to retail customers

image text in transcribed
image text in transcribed
image text in transcribed
Help Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,502 per unit and then sells them to retail customers for an average price of $2,800 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 $959 per month $4,799 per month, plus 41 of sales $62 per piano sold $640 per month $4,974 per month $13,522 per month $691 per month $2,453 per month, plus $40 per piano sold $928 per month During August, Marwick's Pianos, Inc., sold and delivered 55 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 1 Required 2 Prepare a traditional format income statement for August. (A "Net operating loss should be entered as a negative number.) Marwick's Planos, Inc. Traditional Income Statement of August - Marwick's Planos, Inc. Traditional Income Statement For the Month of August 5 Ints eBook Selling and administrative expenses: Selling expenses: Print 0 Total selling expenses Administrative expenses: 0 Total administrative expenses Total selling and administrative expenses 0 Regulred Required 2 2 Contribution Format Income Statement For the Month of August Total Per Piano 3.5 points Variable expenses: eBook Print 0 0 Total variable expenses Contribution margin Fixed expenses Total fixed expenses 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Peter C. Garrison, Ray H., Noreen, Eric W., Brewer

12th Edition

0071274227, 978-0071274227

More Books

Students also viewed these Accounting questions

Question

What is Centrifugation?

Answered: 1 week ago

Question

To find integral of ?a 2 - x 2

Answered: 1 week ago

Question

To find integral of e 3x sin4x

Answered: 1 week ago

Question

To find the integral of 3x/(x - 1)(x - 2)(x - 3)

Answered: 1 week ago

Question

What are Fatty acids?

Answered: 1 week ago