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Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,484 each from
Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,484 each from the manufacturer. Marwicks Pianos, Inc., sells the pianos to its customers at an average price of $3,200 each. The selling and administrative costs that the company incurs in a typical month are presented below: can you help me prepare a contribution statement for this company i am stuck |
Costs | Cost Formula |
Selling: | |
Advertising | $943 per month |
Sales salaries and commissions | $4,802 per month, plus 5% of sales |
Delivery of pianos to customers | $60 per piano sold |
Utilities | $634 per month |
Depreciation of sales facilities | $4,981 per month |
Administrative: | |
Executive salaries | $13,451 per month |
Insurance | $694 per month |
Clerical | $2,451 per month, plus $38 per piano sold |
Depreciation of office equipment | $934 per month |
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