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 $2,500 each. The average cost of an organ from the manufacturer is $1,500. The costs that the company incurs in a typical month are presented below:
Costs
Cost Formula
Selling:
Advertising
$950 per month
Delivery of organs
$60 per organ sold
Sales salaries and commissions
$4,800 per month, plus 4% of sales
Utilities
$650 per month
Depreciation of sales facilities
$5,000 per month
Administrative:
Executive salaries
$13,500 per month
Depreciation of office equipment
$900 per month
Clerical
$2,500 per month, plus $40 per organ sold
Insurance
$700 per month
During November, the company sold and delivered 60 organs.
Required:
1.
Prepare a traditional income statement for November. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the \"$\" sign in your response.)
2.
Prepare a contribution format income statement for November. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the \"$\" sign in your response.)
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