hw ch2 3 Marwicks Pianos, Inc , purchases pianos from a large manufacturer and sells them at the retail level The pianos cost, on the average, $1,481 each from the manufacturer Marwicks Pianos, Inc , sells the pianos to its customers at an average price of $3,300 each The selling and administrative costs that the company incurs in a typical month are presented below Costs Cost Formula Selling Advertising $ 948 per month Sales salaries and commissions $ 4,827 per month, plus 4 of sales Delivery of pianos to customers $ 62 per piano sold Utilities $ 650 per month Depreciation of sales facilities $ 5,096 per month Administrative Executive salaries $ 13,500 per month Insurance $ 701 per month Clerical $ 2,483 per month, plus $39 per piano sold Depreciation of office equipment $ 882 per month During August, Marwicks Pianos, Inc , sold and delivered 57 pianos Required 1 Prepare an income statement for Marwicks Pianos, Inc , for August Use the traditional format, with costs organized by function (A Net operating loss should be entered as a negative number )

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hw ch2.3 Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,481

hw ch2.3

Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,481 each from the manufacturer. Marwicks Pianos, Inc., sells the pianos to its customers at an average price of $3,300 each. The selling and administrative costs that the company incurs in a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$	948 per month
Sales salaries and commissions	$	4,827 per month, plus 4% of sales
Delivery of pianos to customers	$	62 per piano sold
Utilities	$	650 per month
Depreciation of sales facilities	$	5,096 per month
Administrative:
Executive salaries	$	13,500 per month
Insurance	$	701 per month
Clerical	$	2,483 per month, plus $39 per piano sold
Depreciation of office equipment	$	882 per month

During August, Marwicks Pianos, Inc., sold and delivered 57 pianos.

Required:

1. Prepare an income statement for Marwicks Pianos, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number.)