2 Traditional Income Statement For the Month of August $114,000 Sales Cost of goods sold 85,044 4 Gross margin points Selling and administrative expenses Selling expenses: $ 967 Advertising Sales salaries and commissions 8,217 Delivery of pianos 3,477 Utilities 667 Depreciation of sales facilities 4,985 Total selling expenses 18,313 Administrative expenses 13,448 Executive salaries Insurance 720 Clerical 4,770 Depreciation of office equipment 909 Total administrative expenses 19,847 Total selling and administrative 38,160 ex es Net operating loss Check my work mode: This shows what is correct or incorrect for the work you have completed so fa 2 Contribution Format Income Statement For the Month of August Per Piano Total 4 $114,0002,000 Sales points Variable expenses Sales salaries and commissions Delivery of pianos Clerical Cost of goods sold Total variable expenses Contribution margin Fixed expenses Advertising Sales salaries and commissions Utilities Depreciation of office equipment Depreciation of sales facilities Executive salaries Insurance Clerical Total fixed expenses Net oneratina income 2 Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,492 per unit and then sells them to retail customers for an average price of $2,000 each. The company's selling and administrative costs for a typical month are presented below: 4 Cost Formula Costs points Selling: Advertising Sales salaries andcommissions $967 per month $4,797 per month, plus 3% of sales $61 per piano sold $667 per month $4,985 per month Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: $13,448 per month $720 per month $2,490 per month, plus $40 per piano sold $909 per month Executive salaries Insurance Clerica.l Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 57 pianos Required 1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin Answer is not complete. Complete this question by entering your answers in the tabs below