Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / House of Organs Inc purchases organs from a well-known manufacturer and sells them at the ...

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 $2500 each The average cost of an organ from the

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:

 

        

 

 

During November, the company sold and delivered 60 organs.

Required:

1.       Prepare a traditional income statement for November.

2.       Prepare a contribution format income statement for November. 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?

Jun 30 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions