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17 Problem 1-21 Traditional and Contribution Format Income Statements (LO1-6] pints Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,484 per unit and then sells them to retail customers for an average price of $2,500 each. The company's selling and administrative costs for a typical month are presented below: eBook Cost Formula Print References Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $965 per month $4,811 per month, plus 4% of sales $61 per piano sold $658 per month $4,935 per month $13,552 per month $ 707 per month $2,453 per month, plus $39 per piano sold $922 per month During August, Marwick's Pianos, Inc., sold and delivered 63 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. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 nts Prepare a traditional format income statement for August. (A "Net operating loss" should be entered as a negative number.) eBook Print eferences $ 157,500 93,492 64,008 Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses: Advertising $ 965 Sales salaries and commissions 11,111 Utilities 658 Depreciation of sales facilities 4,935 Delivery of pianos 3,843 21,512 Total selling expenses Administrative expenses: Insurance 707 Selling and administrative expenses: Selling expenses: Advertising $ Sales salaries and commissions 10 points Utilities Depreciation of sales facilities Delivery of pianos 965 11,111 658 4,935 3,843 eBook Print 0 References 21,512 Total selling expenses Administrative expenses: Insurance Executive salaries Depreciation of office equipment Clerical 707 13,552 922 4,910 0 20,091 Total administrative expenses Total selling and administrative expenses Net operating income 41,603 22,405 $ Required 1 Required 2 > Required 1 Required 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. (A "Net operating loss" should be entered as a negative number.) oints eBook Print Per Piano $ 2,500 References 100 Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Sales $ 157,500 Variable expenses: Clerical 2,457 Sales salaries and commissions 6,300 Delivery of pianos 3,843 Cost of goods sold 93,492 0 0 Total variable expenses 106,092 Contribution margin $ 51,408 Fixed expenses: Advertising 965 Depreciation of sales facilities 4,935 Utilities 658 1,484 1,684 Delivery or pianos 3,0431 17 Cost of goods sold i 93,492 1,484 1,684 points 106,092 51,408 $ eBook Print Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation of sales facilities Utilities Executive salaries Insurance Depreciation of office equipment Clerical Sales salaries and commissions 965 4,935 658 References 707 922 2,453 4,811 Total fixed expenses Net operating income 29,003 22,405 $