Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. marwicks pianos, incorporated, purchases pianos fr

Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,499...

90.2K

Verified Solution

Question

Accounting

Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $2,900 each. The companys selling and administrative costs for a typical month are presented below:

Costs Cost Formula
Selling:
Advertising $956 per month
Sales salaries and commissions $4,773 per month, plus 4% of sales
Delivery of pianos to customers $60 per piano sold
Utilities $640 per month
Depreciation of sales facilities $4,972 per month
Administrative:
Executive salaries $13,483 per month
Insurance $712 per month
Clerical $2,505 per month, plus $42 per piano sold
Depreciation of office equipment $907 per month

During August, Marwicks Pianos, Incorporated, sold and delivered 60 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.image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Question 10 1 point A random sample of 25 observations population with a population variand...

Basic Math
Q

discuss the body's acute phase response to the release of interleukin I by the monocyte/macrophage system.

Biology
Q

Cystic fibrosis is a recessive disorder. If a child comes from two heterozygous parents, what is...

Biology
Q

Explain why a conductor in electrostatic equilibrium should have no electric field parallel to its surface,...

Physics
Q

17 0 1 02 0 3 16 4 15 N 2 14 13 11 3...

Biology
Q

Page 1 4 1 7 10 Nj 8 3 6 9 Question 4 1 point...

Geometry
Q

The productivity of a major manufacturer of microwave ovens is given approximately 0 1 0...

Calculus
Q

Current Attempt in Progress Staples, Inc. is one of the largest suppliers of...

Accounting
Q

Return on total assets A company reports the following income statement and balance sheet information...

Accounting
Q

If customers had developed a preference for credit purchases, why this change in customer behaviour...

Accounting
Q

11. Explain the usefulness of the internal audit function to the management of a business....

Accounting
Q

The annual report of Funtime Cars Inc. for the year ended December 31, 2020, included...

Accounting