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
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
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 3P: Ohio Logistics manages the logistical activities for firms by matching companies that need products...
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![ences
Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,510 per unit and then sells them to
retail customers for an average price of $3,100 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
Cost Formula
$958 per month
$4,006 per month, plus 5% of sales
$60 per piano sold
$663 per month
$4,912 per month
$13,587 per month
$6a5 per month
$2,537 per month, plus $42 per plano sold
$891 per month
Insurance
Clerical
Depreciation of office equipment
During August, Marwick's Pianos, Incorporated, sold and delivered 61 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3767972f-3214-400b-8b16-9d53654b165b%2F300e9c4f-a6ae-4762-b6d5-d8013eb079ac%2Fci7du8b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ences
Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,510 per unit and then sells them to
retail customers for an average price of $3,100 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
Cost Formula
$958 per month
$4,006 per month, plus 5% of sales
$60 per piano sold
$663 per month
$4,912 per month
$13,587 per month
$6a5 per month
$2,537 per month, plus $42 per plano sold
$891 per month
Insurance
Clerical
Depreciation of office equipment
During August, Marwick's Pianos, Incorporated, sold and delivered 61 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.
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