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Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $2,450 each from
Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $2,450 each from the manufacturer. Marwick's Pianos, Inc., sells the pianos to its customers at an average price of $3,125 each. The selling and administrative costs that the company incurs in a typical month are presented below: Costs Selling: Cost Formula During August, Marwick's Pianos, Inc., sold and delivered 40 pianos Prepare an income statement for Marwick's Pianos, Inc., for August, this time using the contribution format, with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through contribution margin. Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Variable expenses Total variable expenses Contribution margin Fixed expenses: Total fixed expenses
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