Marwik Pianos. Inc purchases pianos from a large manufacturer for an average cost of $1,482 per unit and then sells them to retail Customers for an average price or S2,100 each. The company's selling and administrative costs for a typical month are presented belowCostsCost FormualaSelling$965 per monthAdvertising$4,793 per month plus 5% of SalesSales Salaries and commissions$57 per piano soldDelivery of Pianos to customers$670 per monthUtilities$4,903 per monthDepreciaiton of Sales Facilities Administrative Executive Salaries$13,506 per monthInsurance$701 per monthClerical$2,480 per month,plus $ 37 per piano soldDepreciation of Office Equipment$916 per monthDuring August, Marvik Pianos sold and delivered 63 pianos.Prepare Traditional Income Statement and also prepare contribution format income statement for cost(Show costs and revenues on both a total and a per unit basis down through contribution margin)

Operating profit: It refers to the profit earned by business from its operations after deducting…

Answered: Marwik Pianos. Inc purchases pianos…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Marwik Pianos. Inc purchases pianos from a large manufacturer for an average cost of $1,482 per unit and then sells them to retail Customers for an average price or S2,100 each. The company's selling and administrative costs for a typical month are presented below

Costs	Cost Formuala
Selling	$965 per month
Advertising	$4,793 per month plus 5% of Sales
Sales Salaries and commissions	$57 per piano sold
Delivery of Pianos to customers	$670 per month
Utilities	$4,903 per month
Depreciaiton of Sales Facilities
Administrative
Executive Salaries	$13,506 per month
Insurance	$701 per month
Clerical	$2,480 per month,plus $ 37 per piano sold
Depreciation of Office Equipment	$916 per month

During August, Marvik Pianos sold and delivered 63 pianos.

Prepare Traditional Income Statement and also prepare contribution format income statement for cost(Show costs and revenues on both a total and a per unit basis down through contribution margin)

Expert Solution

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions