Marwicks Pianos, Inc , purchases pianos from a large manufacturer and sells them at the retail level The pianos cost, on the average, $1,516 each from the manufacturer Marwicks 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 $940 per month Sales salaries and commissions $4,824 per month, plus 3 of sales Delivery of pianos to customers $63 per piano sold Utilities $664 per month Depreciation of sales facilities $5,036 per month Administrative Executive salaries $13,559 per month Insurance $710 per month Clerical $2,544 per month, plus $39 per piano sold Depreciation of office equipment $914 per month During August, Marwicks Pianos, Inc , sold and delivered 62 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 ) 2 Prepare an income statement for Marwicks 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 )

Question

Marwicks Pianos, Inc , purchases pianos from a large manufacturer and sells them at the retail level  The pianos cost, on the average, $1,516 each from the manufacturer  Marwicks 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 $940 per month Sales salaries and commissions $4,824 per month, plus 3  of sales Delivery of pianos to customers $63 per piano sold Utilities $664 per month Depreciation of sales facilities $5,036 per month Administrative  Executive salaries $13,559 per month Insurance $710 per month Clerical $2,544 per month, plus $39 per piano sold Depreciation of office equipment $914 per month During August, Marwicks Pianos, Inc , sold and delivered 62 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 ) 2  Prepare an income statement for Marwicks 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 )

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Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,516 each from

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Costs	Cost Formula
Selling:
Advertising	$940 per month
Sales salaries and commissions	$4,824 per month, plus 3% of sales
Delivery of pianos to customers	$63 per piano sold
Utilities	$664 per month
Depreciation of sales facilities	$5,036 per month
Administrative:
Executive salaries	$13,559 per month
Insurance	$710 per month
Clerical	$2,544 per month, plus $39 per piano sold
Depreciation of office equipment	$914 per month

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.)