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Marwick s Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $ 1 , 5 0 0 per unit and then sells

Marwicks Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,500 per unit and then sells them to retail customers for an average price of $3,000 each. The companys selling and administrative costs for a typical month are presented below:
Costs Cost Formula
Selling:
Advertising $955 per month
Sales salaries and commissions $4,812 per month, plus 5% of sales
Delivery of pianos to customers $58 per piano sold
Utilities $643 per month
Depreciation of sales facilities $5,074 per month
Administrative:
Executive salaries $13,539 per month
Insurance $684 per month
Clerical $2,472 per month, plus $39 per piano sold
Depreciation of office equipment $851 per month
During August, Marwicks Pianos, Incorporated, sold and delivered 59 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.

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