How to prepare a traditional income statement using only selling and administrative
The organ sell on average for 2500, average cost from the manufacturer is 1500.
Selling: advertising 950 per month, delivery of organs 60, sales salaries and commission 4800+4%commission, utilities 650 per month, depreciation of sales5000 per month
Administrative: executive salaries 13,500 per month, depreciation of office equipment 900 per month, clerical 2500 per month + 40 per organ sold, insurance $700 .
Prepare a traditional and contribution income statement. Showing cost and revenue on a per unit basis
