King Flute & Instruments is a leading producer of quality instruments based on projection, fuller sounds, and designs.  King Flute carries the best flute brands: Pearl Quantz Series Flute, Gemeinhardt 32B Flute, and Yamaha 677H Flute. They have contracts with instrument manufacturers for an average cost of ₱17,270 and then sell them to retail companies for an average price of ₱34,540.  During the month, King Flute sold 80 Pearl Quantz Series Flutes.  The company’s selling, general, and administrative (SG&A) costs related to the product line are presented below:   Selling:         Advertising  ₱15,000 per month         Sales salaries and commissions  ₱7,500 per month, plus 12.5% of sales         Delivery costs to customers  ₱485 per instrument sold         Utilities  ₱2,000 per month         Depreciation of sales facilities  ₱800 per month   General & Administrative:         Staff salaries  ₱25,000 per month         Insurance  ₱2,000 per month         Clerical  ₱150 per month, plus ₱50 per instrument sold         Depreciation of office equipment   ₱120 per month         Miscellaneous office expense  ₱520 per month   ₱____________ is the amount of contribution margin of King Flute & Instruments. ₱____________ is the amount of total fixed costs of King Flute & Instruments.. ₱____________ is the amount of net operating income of King Flute & Instruments.. ₱____________ is the amount of selling expenses of King Flute & Instruments

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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King Flute & Instruments is a leading producer of quality instruments based on projection, fuller sounds, and designs.  King Flute carries the best flute brands: Pearl Quantz Series Flute, Gemeinhardt 32B Flute, and Yamaha 677H Flute. They have contracts with instrument manufacturers for an average cost of ₱17,270 and then sell them to retail companies for an average price of ₱34,540.  During the month, King Flute sold 80 Pearl Quantz Series Flutes.  The company’s selling, general, and administrative (SG&A) costs related to the product line are presented below:

  Selling:
        Advertising  ₱15,000 per month
        Sales salaries and commissions  ₱7,500 per month, plus 12.5% of sales
        Delivery costs to customers  ₱485 per instrument sold
        Utilities  ₱2,000 per month
        Depreciation of sales facilities  ₱800 per month
  General & Administrative:
        Staff salaries  ₱25,000 per month
        Insurance  ₱2,000 per month
        Clerical  ₱150 per month, plus ₱50 per instrument sold
        Depreciation of office equipment   ₱120 per month
        Miscellaneous office expense  ₱520 per month
 

₱____________ is the amount of contribution margin of King Flute & Instruments.

₱____________ is the amount of total fixed costs of King Flute & Instruments..

₱____________ is the amount of net operating income of King Flute & Instruments..

₱____________ is the amount of selling expenses of King Flute & Instruments.

 
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