Question

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Concert Pianos, Inc., purchases pianos from a well-known manufacturer and resells them at its retail store. Needed information for this lab assignment is given below CONCERT PIANOS, INC. $ 5,300 Average sales price of each piano Number o f pianos sold and delivered in March sts Average cost of each piano (cost of goods sold) st Formula 2,800 per piano Sellin Advertising 950 per month Delivery of pianos per piano sold 4,800 per month plus 5% 60 Sales salaries and commissions Utilities Depreciation of sales facilities of sales per month $ 5,000 per month 650 Administrative: Executive salaries Depreciation of office equipment Clerical Insurance $ 13,500 per month 900 per month $ 2,500 per month plus $40 per piano sold 700 per month

Answer 1

CONCERT PIANOS INC.
Contribution Format Income Statement
For the month Ended March 31
Particular	Total ($)	Per piano
Sales	291500	5300
Variable Expenses
Cost of Good sold	154000	2800
Delivery of pianos	3300	60
Sales Commissions	14575	5% of sales
Clerical	2200	40
Total Variable Expenses	174075
Contribution Margin	117425
Fixed Expenses
Advertising	950
Sales Salaries	4800
Utilities	650
Depreciation sales facilities	5000
Executive salary	13500
Depreciation of equipment	900
Clerical	2500
Insurance	700
Total Fixed expenses	29000
Net operating income	88425

CONCERT PIANOS INC.
Contribution Format Income Statement
For the month Ended March 31
Particular	Total ($)
Sales	291500
Cost of good sold	154000
Gross Margin	137500
Sales and Adminstrative expenses
Selling Expenses
Advertising	950
Delivery of piano	3300
Sales salary and commissions	19375
Utilities	650
Depreciation of sales facilities	5000
Total selling expenses	29275
Administrative expenses
Executive salary	13500
Depreciation of equipment	900
Clerical	4700
Insurance	700
Total administrative expenses	19800
Total selling and administrative exp	49075
Net operating Income	88425