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Business, 26.09.2019 22:20 chloe081

House of pianos, inc., purchases pianos from a well-known manufacturer and sells them at the retail level. the pianos sell, on the average, for $3,300 each. the average cost of an piano from the manufacturer is $1,492. the costs that the company incurs in a typical month are presented below: costs cost formula selling: advertising $955 per month delivery of pianos $61 per piano sold sales salaries and $4,823 per month, plus 4% of sales utilities $633 per month depreciation of sales facilities $4,944 per month administrative: executive salaries $13,490 per month depreciation of office equipment $943 per month clerical $2,499 per month, plus $37 per piano sold insurance $719 per month during november, the company sold and delivered 60 pianos. required: 1. prepare a traditional income statement for september. 2. prepare a contribution format income statement for september. show costs and revenues on both a total and a per unit basis down through contribution margin. 3. refer to the income statement you prepared in (2) above. why might it be misleading to show the fixed costs on a per unit basis?

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