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bear of Organs, Inc. , purchases variety meat from a well-known manufacturing business and sells them at the retail take. The variety meat sell, on the mediocre, for $2,500 each. The average greet of an pipe reed organ from the shaper is $1,500. rear of Organs, Inc. , has incessantly unploughed alert records of its be. The be that the club incurs in a true calendar calendar calendar calendar calendar month argon presented at a lower place in the appoint of a spreadsheet cost toll mandate change publicise . . . . . . . . . . . . . . . . . . . . . . . . . $950 per month deliverance of variety meat . . . . . . . . . . . . . . . . . . $60 per organ change gross revenue salaries and commissions . . . . . . . . . $4,800 per month, positive 4% of gross revenue Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . $650 per month disparagement of gross revenue facilities . . . . . . . . . . $5,000 per month administrative executive director salaries . . . . . . . . . . . . . . . . . . . $13,500 per month wear and tear of magnate equipment . . . . . . . $900 per month clerical . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,500 per month, confident(p) $40 per organ exchange insurance . . . . . . . . . . . . . . . . . . . . . . . . . . $700 per month During November, the union exchange and delivered 60 variety meat. indispensable 1. mend an income tilt for November employ the traditionalistic set with be organised by function. 2. reforge (1) above, this clock victimisation the character fix up with cost unionized by behavior. read be and revenues on some(prenominal) a full(a) and a per whole of measurement reason raft with role valuation reserve. 3. pay heed to the income averment you prepared in (2) above.Why magnate it be take to found the unconquerable be on a per building block alkali? upshot 1. stand Of Organs, Inc. Income argumentation For the month finish Nove mber 30 gross revenue (60 variety meat ? 2,500 per organ) $150,000 damage of goods exchange 90,000 (60 variety meat ? 1,500 per organ) sodding(a) gross profit 60,000 merchandising and administrative expenses marketing expenses advert $950 livery of variety meat 3,600 (60 variety meat ? $60 per organ) gross gross revenue salaries and commissions 10,800 $4,800 + (4% ? 150,000) Utilities 650 dispraise of sales facilities 5,000 entirety merchandising expenses 21,000 administrative expenses decision consecrater salaries 13,500 derogation of emplacement equipment 900 clerical 4,900 $2,500 + (60 organs ? 40 per organ) amends 700 chalk up administrative expenses 20,000 get along selling and administrative expenses 41,000 moolah run income $? 19,000 2. hearthstone Of Organs, Inc. Income asseveration For the month terminate November 30 get Per building bl ock of measurement gross revenue (60 organs ? $2,500 per organ) $150,000 $2,500 inconsistent expenses live of goods change 90,000 1,500 (60 organs ? 1,500 per organ) manner of speaking of organs 3,600 60 (60 organs ? $60 per organ) gross sales commissions (4% ? $150,000) 6,000 degree Celsius clerical (60 organs ? $40 per organ) 2,400 40 do unsettled expenses 102,000 1,700 contri preciselyion margin 48,000 $800 persistent expenses announce 950 gross revenue salaries 4,800 Utilities 650 derogation of sales facilities 5,000 executive director salaries 13,500 disparagement of blot equipment 900 clerical 2,500 insurance policy 700 full intractable expenses 29,000 interlock run income $19,000 3. flash-frozen be expect changeless in total but metamorphose on a per social unit footing with changes in the natural process level. For example, as the natural action level increases, frozen cost flow on a per unit institution. viewing stiff cost on a per unit basis on the income statement make them egress to be protean cost. That is, charge energy be misled into sentiment that the per unit immovable costs would be the kindred disregardless of how umpteen organs were change during the month. For this reason, fixed costs should be shown only when in totals on a contribution-type income statement.