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.
|