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the green checks are what I got correct, the red is what I need help answering. Marwick's Pianos, Inc., purchases pianos from a large manufacturer
the green checks are what I got correct, the red is what I need help answering.
Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,503 per unit and then sells them to retail customers for an average price of $2,000 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions s968 per month $4,818 per month, plus 5% of sales $58 per piano sold $658 per month $5,055 per month Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries $13,509 per month $696 per month $2,501 per month, plus $41 per piano sold $926 per month Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 63 pianos 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. Answer is not complete. Complete this question by entering your answers in the tabs below Marwick's Pianos, Inc Contribution Format Income Statement For the Month of August Per Total Piano $126,000 2,000 Sales Variable expenses: Sales salaries and commissions 11,118 4,918 58 Delivery of pianos 3,654 Clerical 5,084 2,542 Total variable expenses 19,856 7,518 $ 106,144 (5,518) Contribution margin Fixed expenses Advertising 968 Utilities 658 5,055 13,509 Depreciation of sales facilities Executive salaries Insurance 696 Depreciation of office equipment 926Step by Step Solution
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