Business, 19.05.2020 16:20, jahjah1158
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,513 per unit and then sells them to retail customers for an average price of $2,600 each. The company’s selling and administrative costs for a typical month are presented below:
Costs Cost Formula
Selling:
Advertising $954 per month
Sales salaries and commissions $4,781 per month, plus 4% of sales
Delivery of pianos to customers $57 per piano sold
Utilities $640 per month
Depreciation of sales facilities $5,090 per month
Administrative:
Executive salaries $13,514 per month
Insurance $709 per month
Clerical $2,495 per month, plus $37 per piano sold
Depreciation of office equipment $884 per month
During August, Marwick's Pianos, Inc., sold and delivered 40 pianos.
Required:
a. Prepare an income statement for Marwick's Pianos, Inc., for August. Use the traditional format, with costs organized by function.
b. Redo (a) above, this time using the contribution format, with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through contribution margin.
c. Refer to the income statement you prepared in (b) above. Why might it be misleading to show the fixed costs on a per unit basis?
Answers: 1
Business, 21.06.2019 22:50, kyliegriffis
He taylor company sells music systems. each music system costs the company $100 and will be sold to the public for $250. in year one, the company sells 100 gift cards to customers for $250 each ($25,000 in total). these cards are valid for just one year, and company officials expect them to all be redeemed. in year two, only 96 of the cards are returned. what amount of net income does the company report for year two in connection with these cards? a. $15,000b. $15,400c. $15,500d. $15,800
Answers: 1
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,513 per...
Biology, 05.04.2021 21:10
Mathematics, 05.04.2021 21:10
Mathematics, 05.04.2021 21:10
History, 05.04.2021 21:10
Spanish, 05.04.2021 21:10