House of organs inc purchases organs from a well-known

Reference no: EM13576310

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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