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House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $3,300

House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for $3,300 each. The average cost of an organ from the manufacturer is $1,491. The costs that the company incurs in a typical month are presented below:


Costs Cost Formula
Selling:
Advertising $951 per month
Delivery of organs $61 per organ sold
Sales salaries and commissions $4,800 per month, plus 5% of sales
Utilities $667 per month
Depreciation of sales facilities $4,956 per month
Administrative:
Executive salaries $13,559 per month
Depreciation of office equipment $924 per month
Clerical $2,528 per month, plus $40 per organ sold
Insurance $693 per month


During November, the company sold and delivered 56 organs.

Required:
1.

Prepare a traditional income statement for November.

2. Prepare a contribution format income statement for November.

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