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
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 | |
|
₱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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