Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marwick's Planos, Incorporated, purchases planos from a manufacturer for an average cost of $1,516 per unit and then sells them to retail customers for


 

Marwick's Planos, Incorporated, purchases planos from a manufacturer for an average cost of $1,516 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: Costs Selling: Advertising Sales salaries and commissions Delivery of planos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $954 per month $4,810 per month, plus 5% of sales. $62 per piano sold $657 per month $4,960 per month $13,408 per month $681 per month $2,537 per month, plus $42 per piano sold $914 per month During August, Marwick's Pianos, Incorporated, sold and delivered 62 planos. 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Marwicks Planos Incorporated 1 Traditional Format Income Statement for August Revenues Sales 62 plan... 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

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

17th Edition

1260247783, 978-1260247787

More Books

Students also viewed these Accounting questions

Question

What do their students end up doing when they graduate?

Answered: 1 week ago

Question

x-3+1, x23 Let f(x) = -*+3, * Answered: 1 week ago

Answered: 1 week ago