Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,482 per unit and then sells them to retail customers for an average price of $2,500 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries $951 per month $4,810 per month, plus 4% of sales $61 per piano sold $635 per month $5,027 per month $13,552 per month $715 per month $2,529 per month, plus $43 per piano sold $914 per month Insurance clerical Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 59 pianos. Marwick's Pianos, Inc Traditional Income Statement For the Month of August 158,600 S Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses: Advertising Sales salaries and commissions Delivery of pianos Utilities Depreciation of sales facilities 0 Total selling expenses Administrative expenses: Executive salaries Insurance Clerical Depreciation of office equipment 0 Total administrative expenses Total selling and administrative expenses Net operating income Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Sales Variable expenses: Cost of goods sold Sales salaries and commissions Delivery of pianos Total variable expenses 0 0 Contribution margin Fixed expenses: Advertising insurance Depreciation of office equipment Depreciation of sales facilities Total foxed expenses Ne: operating noome C