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Solution Manual To Introduction To Management

2262 words - 10 pages

Problem 1-14B (45 minutes)

1.
| |House Of Pianos, Inc. |
| |Traditional Income Statement |
| |For the Month Ended September 30 |
| | | | |
| |Sales (60 pianos × $3,300 per piano) ...view middle of the document...

|House Of Pianos, Inc. |
| |Contribution Format Income Statement |
| |For the Month Ended September 30 |
| | | | |
| | |Total |Per Unit |
| |Sales (60 pianos × $3,300 per piano) |$198,000 |$3,300 |
| |Variable expenses: | | |
| |Cost of goods sold |89,520 |1,492 |
| |(60 pianos × $1,492 per piano) | | |
| |Delivery of pianos |3,660 |61 |
| |(60 pianos × $61 per piano) | | |
| |Sales commissions (4% × $198,000) |7,920 |132 |
| |Clerical (60 pianos × $37 per piano) |    2,220 |      37 |
| |Total variable expenses | 103,320 | 1,722 |
| |Contribution margin |  94,680 |$1,578 |
| |Fixed expenses: | | |
| |Advertising |955 | |
| |Sales salaries |4,823 | |
| |Utilities |633 | |
| |Depreciation of sales facilities |4,944 | |
| |Executive salaries |13,490 | |
| ...

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