Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marwick s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $ 1 , 4 9 8 per unit and then

Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,498 per unit and then sells them to retail customers for an average price of $2,400 each The company's selling and administrative costs for a typical month are presented below:
Advertising =$955 per month
Sales salaries and commissions =$4,776 per month, plus 5% of sales
Delivery of pianos to customers =$60 per piano sold
Utilities =$631 per month
Depreciation of sales facilities =$4,974 per month
Administrative:
Executive salaries= $13,487 per month
Insurance =$700 per month
Clerical =$2,549 per month, plus $36 per piano sold
DeDuring August, Marwicks Pianos, Incorporated, sold and delivered 62 pianos.
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.

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

Step: 3

blur-text-image

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

Sound Investing, Chapter 7 - Cash Versus Accrual

Authors: Kate Mooney

1st Edition

0071719296, 9780071719292

More Books

Students also viewed these Accounting questions

Question

Identify the federal laws affecting equal employment opportunity.

Answered: 1 week ago

Question

Identify the elements of the dynamic HRM environment.

Answered: 1 week ago

Question

Discuss attempts at legislating ethics.

Answered: 1 week ago