House of organs inc purchases organs from a well-known

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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 $3,000 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   $962 per month
       Delivery of organs   $57 per organ sold
       Sales salaries and commissions   $4,783 per month, plus 5% of sales
       Utilities   $639 per month
       Depreciation of sales facilities   $5,098 per month
  Administrative:
       Executive salaries   $13,481 per month
       Depreciation of office equipment   $890 per month
       Clerical   $2,550 per month, plus $41 per organ sold
       Insurance   $718 per month

During November, the company sold and delivered 60 organs.

Prepare a traditional income statement for November.

Prepare a contribution format income statement for November.

Reference no: EM13576310

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