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.

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

PriceWar Industries recently paid a dividend of D0 = $1.32. We expect the company’s dividend to...

Electrical Engineering
1.2K views

A balanced three-phase generator delivers 6.3 kW to a delta-connected load with impedance 13 - j23.4...

Physics
1.2K views

It s for a test Problem A sine wave travels in the positive x direction...

Calculus
1.2K views

The graph of y f x is shown in blue Draw the graph of y...

Calculus
1.2K views

45 Graph the inverse of the following x A B I C D

Accounting
1.2K views

Conversion Costs Cost Information and the weighted Average Method Morrison Company had the equivalent units...

Accounting
1.2K views

Requlred information At the beginning of the yeac. Plummers Sports Center bought three used faness...

Accounting
1.2K views

Check my work 1 The Giles Agency u Teren 12% trnded e discount en advertising...

Accounting
1.2K views

You own the dwelling in which you live and rent one-third of it. Expenses attributable...

Accounting
1.2K views

J Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):...

Finance
1.2K views

Which of the following statements is true regarding insurance market conditions and underwriting results?

Finance
1.2K views

A portfolio of annual coupon bonds is valued at $100. The modified duration of the...