House of Organs, Inc., purchases organs from a well known manufacturer and sells them at the retail level. The organs sell, on the average, for $3,100 each. The average cost of an organ from the manufacturer is $1,508. The costs that the company incurs in a typical month are presented below:
Costs Cost Formula
Selling:
Advertising $950 per month
Delivery of organs $59 per organ sold
Sales salaries and commissions $4,812 per month, plus 4% of sales
Utilities $642 per month
Depreciation of sales facilities $4,916 per month
Administrative:
Executive salaries $13,489 per month
Depreciation of office equipment $901 per month
Clerical $2,541 per month, plus $41 per organ sold
Insurance $717 per month
During November, the company sold and delivered 55 organs.
Prepare a traditional income statement for November. (Input all amounts as positive values except losses which should be indicated by a minus sign.)
House of Organs, Inc.
Traditional Income Statement
For the Month Ended November 30
Selling and administrative expenses:
Selling expenses:
Total selling expenses
Administrative expenses:
Total administrative expenses
Total selling and administrative expenses
Prepare a contribution format income statement for November.
House Of Organs, Inc.
Contribution Format Income Statement
For the Month Ended November 30
Total Per unit
$ $
Variable expenses:
Total variable expenses
Contribution margin $
Fixed expenses:
Total fixed expenses