Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customer's Utilities Depreciation of sales...

 

Transcribed Image Text:

Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customer's Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $955 per month $4,795 per month, plus 3% of sales $59 per piano sold $665 per month $4,988 per month $13,523 per month $691 per month $2,532 per month, plus $40 per piano sold $888 per month During August, Marwick's Planos, 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. Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customer's Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $955 per month $4,795 per month, plus 3% of sales $59 per piano sold $665 per month $4,988 per month $13,523 per month $691 per month $2,532 per month, plus $40 per piano sold $888 per month During August, Marwick's Planos, 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.

Answer rating: 100% (QA)

Answer To prepare the traditional format income statement for August we need to calculate the total ... View the full answer