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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 $1,511. The costs that the company incurs in a typical month are presented below:

Costs Cost Formula
Selling:
Advertising $959 per month
Delivery of organs $62 per organ sold
Sales salaries and commissions $4,829 per month, plus 5% of sales
Utilities $631 per month
Depreciation of sales facilities $4,947 per month
Administrative:
Executive salaries $13,417 per month
Depreciation of office equipment $860 per month
Clerical $2,456 per month, plus $36 per organ sold
Insurance $703 per month

During November, the company sold and delivered 60 organs.

Required:
1.

Prepare a traditional income statement for November. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

House Of Organs, Inc. Traditional Income Statement For the Month Ended November 30
(Click to select)Cost of goods soldUtilitiesDelivery of organsClericalAdvertisingSalesDepreciation of sales facilitiesDepreciation of office equipmentSales salaries and commissionsExecutive salaries $
(Click to select)Cost of goods soldInsuranceSalesDepreciation of office equipmentAdvertisingDepreciation of sales facilitiesUtilitiesSales salaries and commissionsClericalDelivery of organs
(Click to select)Gross lossGross marginNet operating incomeNet operating loss
Selling and administrative expenses:
Selling expenses:
(Click to select)AdvertisingDepreciation of office equipmentInsuranceUtilitiesDelivery of organsExecutive salariesClericalCost of goods sold Sales salaries and commissionsDepreciation of sales facilities $
(Click to select)Sales salaries and commissionsClericalUtilitiesDelivery of organsDepreciation of office equipmentExecutive salariesCost of goods sold AdvertisingDepreciation of sales facilitiesInsurance
(Click to select)Executive salariesAdvertisingDelivery of organsDepreciation of office equipmentClericalInsuranceUtilitiesCost of goods sold Depreciation of sales facilitiesSales salaries and commissions
(Click to select)Executive salariesSales salaries and commissionsDelivery of organsDepreciation of sales facilitiesCost of goods sold UtilitiesAdvertisingClericalDepreciation of office equipmentInsurance
(Click to select)InsuranceDepreciation of office equipmentDepreciation of sales facilitiesUtilitiesAdvertisingDelivery of organsClericalSales salaries and commissionsExecutive salariesCost of goods sold
Total selling expenses
Administrative expenses:
(Click to select)InsuranceClericalAdvertisingUtilitiesCost of goods sold Executive salariesDepreciation of sales facilitiesDelivery of organs Depreciation of office equipmentSales salaries and commissions
(Click to select)Delivery of organs AdvertisingInsuranceSales salaries and commissionsDepreciation of sales facilitiesUtilitiesDepreciation of office equipmentClericalExecutive salariesCost of goods sold
(Click to select)InsuranceDepreciation of sales facilitiesDepreciation of office equipmentAdvertisingExecutive salariesDelivery of organs ClericalUtilitiesSales salaries and commissionsCost of goods sold
(Click to select)UtilitiesClericalInsuranceDepreciation of office equipmentDepreciation of sales facilitiesSales salaries and commissionsExecutive salariesAdvertisingDelivery of organs Cost of goods sold
Total administrative expenses
Total selling and administrative expenses
(Click to select)Contribution marginNet operating lossGross marginNet operating income $

2.

Prepare a contribution format income statement for November. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

House Of Organs, Inc. Contribution Format Income Statement For the Month Ended November 30
Total Per unit
(Click to select)UtilitiesDepreciation of office equipmentInsuranceExecutive salariesClericalSales commissionsAdvertisingDelivery of organsCost of goods soldSales $ $
Variable expenses:
(Click to select)Depreciation of office equipmentDepreciation of sales facilitiesCost of goods soldUtilitiesAdvertisingSalesSales salariesMaintenanceExecutive salariesInsurance
(Click to select)MaintenanceUtilitiesDepreciation of sales facilitiesSalesAdvertisingSales salariesInsuranceDelivery of organsDepreciation of office equipmentExecutive salaries
(Click to select)UtilitiesMaintenanceDepreciation of office equipmentInsuranceSales salariesSales commissionsDepreciation of sales facilitiesExecutive salariesAdvertisingSales
(Click to select)AdvertisingClericalDepreciation of office equipmentInsuranceSales salariesExecutive salariesUtilitiesMaintenanceDepreciation of sales facilitiesSales
Total variable expenses
Contribution margin $
Fixed expenses:
(Click to select)AdvertisingDepreciation of sales facilitiesClericalExecutive salariesInsuranceDepreciation of office equipmentDelivery of organsCost of goods sold UtilitiesSales salaries
(Click to select)Executive salariesSales salariesClericalAdvertisingUtilitiesDelivery of organsDepreciation of office equipmentInsuranceCost of goods sold Depreciation of sales facilities
(Click to select)Depreciation of sales facilitiesDelivery of organsSales salariesInsuranceUtilitiesDepreciation of office equipmentAdvertisingClericalExecutive salariesCost of goods sold
(Click to select)UtilitiesDepreciation of sales facilitiesDepreciation of office equipmentAdvertisingExecutive salariesCost of goods sold ClericalSales salariesInsuranceDelivery of organs
(Click to select)AdvertisingDelivery of organsDepreciation of sales facilitiesClericalCost of goods sold InsuranceExecutive salariesSales salariesDepreciation of office equipmentUtilities
(Click to select)Delivery of organsExecutive salariesSales salariesCost of goods sold ClericalAdvertisingInsuranceDepreciation of sales facilitiesUtilitiesDepreciation of office equipment
(Click to select)InsuranceAdvertisingUtilitiesCost of goods sold Depreciation of office equipmentDelivery of organsClericalExecutive salariesSales salariesDepreciation of sales facilities
(Click to select)Cost of goods sold AdvertisingDepreciation of sales facilitiesClericalDelivery of organsInsuranceExecutive salariesUtilitiesSales salariesDepreciation of office equipment
Total fixed expenses
(Click to select)Gross marginNet operating lossContribution marginNet operating income $

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