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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, $1,519 each from

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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, $1,519 each from the manufacturer. Marwick's Pianos, Inc., sells the pianos to its customers at an average price of $3,400 each. The selling and administrative costs that the company incurs in a typical month are presented below Costs Cost Formula Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities $955 per month $4,817 per month, plus 4% of sales $58 per piano sold S645 per month $5,056 per month Administrative Executive salaries Insurance Clerical Depreciation of office equipment $13,435 per month $683 per month $2,522 per month, plus $41 per piano sold $879 per month During August, Marwick's Pianos, Inc., sold and delivered 64 pianos. Required: 1. Prepare an income statement for Marwick's Pianos, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: buring August, Marwick's Pianos, Inc., sold and delivered 64 pianos Required: 1. Prepare an income statement for Marwick's Pianos, Inc., for August. Use the traditional format, with costs orga nized by function. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses 2. 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. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses: Total variable expenses Contribution margin Fixed expenses: Total fixed expenses

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