Haroon Tahir Roll no 21

Chapter 2
Problem 2.14
House Of Organs, Inc.
Traditional Income Statement
For the Month Ended November 30

Units Rate
Sales 60 2500
Cost of goods Sold 60 1500
Gross margin

Selling and administrative expenses

Selling expenses:
Advertising
Delivery of organs 60 60
Sales salaries and commissions
Fixed 4800
Variable 4% 150000 6000
Total
Utilities
Depreciation of sales facilities

Total selling expenses

Administrative expenses:
Executive salaries
Depreciation of office equipment
Clerical
Fixed 2500
Variable 60 40 2400
Total
Insurance

Total administrative expenses

Total selling and administrative expenses

 Net operating income

2
House Of Organs, Inc.
Contribution Format Income Statement
For the Month Ended November 30

Units Rate
Sales 60 2500
variable expences:
Cost of good sold 60 1500
Selivery of organ 60 60
Sale commision 4% 150000
Clerical 60 40
Total variable expences
Contributional margin
Fixed expences
Advertising 950
Sale salary 4800
Utilities 650
Depriciation of sales facilities 5000
Excutive salaries 13500
Depriciation ofoffice equipments 900
Clerical 2500
Insurance 700
Total fixed expences 29000
Net operating income $19,000
 Total
150,000
90000
60,000

950
3600

10800
650
5000

21000

13500
900

4900
700

20000

41000
19,000

Total per unit

150000 2500

90000 1500
3600 60
6000 100
2400 40
102000 1700
$4,800 $800