hapter $1$ Homework $i$

Problem $1-21($Algo$)$ Traditional and Contribution Format Income Statements $[$LO$1-6]$

Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $$1,485$ per unit and then sells them to retail customers for an average price of $$3,400$ each. The company's selling and administrative costs for a typical month are presented below.

$\backslash$table$[[,$Cost Formula$],[$Costs$,],[$Selling:$,$$$952$ per month$],[$Advertising$,$$$4,816$ per month, plus $3\%$ of sales$],[$Sales salaries and camissions,$$57$ per piano sold$],[$Delivery of pianos to customers,$$659$ per month$],[$Utilities$,$$$5,004$ per month$],[$Depreciation of sales facilities,$$13,421$ per month$],[$Administrative:$,$$$709$ per month$],[$Executive salaries,$$2,511$ per month, plus $$37$ per piano sold$],[$Insurance$,$$$930$ per month$],[$Clerical$,]]$

During August, Marwick's Pianos, Incorporated, sold and delivered $61$ pianos.

Required:

Prepare a traditional format income statement for August.

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.

Complete this question by entering your answers in the tabs below.

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.

Note: A "Net operating loss" should be entered as a negative number.

Marwick's Pianos, Incorporated

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