Managerial Accounting AP5-15 Surfer Bird, Inc., purchases dune buggies from a well-known manufacturer and sells them at the retail level. The buggies sell, on the average for $2,200 each. The average cost of a buggy from the manufacturer is $1,504. The costs that the company incurs in a typical month are presented below: Costs Cost Formula Selling: Advertising $943 per month Delivery of Buggies $59 per buggy sold Sales salaries and Commissions $4,791 per month, plus 5% of sales Utilities $643 per month Depreciation of sales facilities $4,953 per month
Administrative: Executive salaries $13,412 per month Depreciation of Office Equipment $922 per month Clerical $2,485 per month, plus $35 per buggy sold Insurance $710 per month
During November, the company sold and delivered 55 buggies.
Required: 1. Prepare a traditional income statement for November. (Input all amounts as positive value except losses which should be indicated by a minus sign.) 2. Prepare a contribution format income statement for November. (Input all amounts as positive value except losses which should be indicated by a minus sign.)