Marwicks Pianos, Inc , purchases pianos from a large manufacturer for an average cost of $1,493 per unit and then sells them to retail customers for an average price of $2,100 each The companys selling and administrative costs for a typical month are presented below Costs Cost Formula Selling Advertising $ 946 per month Sales salaries and commissions $ 4,820 per month, plus 5 of sales Delivery of pianos to customers $ 58 per piano sold Utilities $ 644 per month Depreciation of sales facilities $ 4,989 per month Administrative Executive salaries $ 13,511 per month Insurance $ 718 per month Clerical $ 2,456 per month, plus $41 per piano sold Depreciation of office equipment $ 914 per month During August, Marwicks Pianos, Inc , sold and delivered 55 pianos Required 1 Prepare a traditional format income statement for August 2 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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Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,493 per unit and then sells them to retail customers for

Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,493 per unit and then sells them to retail customers for an average price of $2,100 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$	946 per month
Sales salaries and commissions	$	4,820 per month, plus 5% of sales
Delivery of pianos to customers	$	58 per piano sold
Utilities	$	644 per month
Depreciation of sales facilities	$	4,989 per month
Administrative:
Executive salaries	$	13,511 per month
Insurance	$	718 per month
Clerical	$	2,456 per month, plus $41 per piano sold
Depreciation of office equipment	$	914 per month

During August, Marwicks Pianos, Inc., sold and delivered 55 pianos.

Required:

1. Prepare a traditional format income statement for August. 2. 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.