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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:
During November, the company sold and delivered 60 organs.
Prepare a traditional income statement for November.
Prepare a contribution format income statement for November.
Gemstone Corporation has a sales budget for next month of $600,000. Cost of goods sold is expected to be 30 percent of sales. All goods are purchased in the month used and paid for in the month following purchase.
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1.failure to record amounts earned for services provided to customers but not yet paid results in which of the
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