Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,509 per unit and then sells them to retail customers for an average price of $3,400 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $934 per month $4,794 per month, plus 6% of sales $62 per piano sold $633 per month $4,931 per month Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: $13,446 per month $710 per month $2,491 per month, plus $43 per piano sold $856 per month Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 61 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. 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 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 Required 1 Required 2 > Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,509 per unit and then sells them to retail customers for an average price of $3,400 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $934 per month $4,794 per month, plus 6% of sales $62 per piano sold $633 per month $4,931 per month Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: $13,446 per month $710 per month $2,491 per month, plus $43 per piano sold $856 per month Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 61 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. 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 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 Required 1 Required 2 > Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,509 per unit and then sells them to retail customers for an average price of $3,400 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $934 per month $4,794 per month, plus 6% of sales $62 per piano sold $633 per month $4,931 per month Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: $13,446 per month $710 per month $2,491 per month, plus $43 per piano sold $856 per month Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 61 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. 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 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 Required 1 Required 2 > Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,509 per unit and then sells them to retail customers for an average price of $3,400 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $934 per month $4,794 per month, plus 6% of sales $62 per piano sold $633 per month $4,931 per month Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: $13,446 per month $710 per month $2,491 per month, plus $43 per piano sold $856 per month Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 61 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. 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 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 Required 1 Required 2 >