Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,496 per unit and then sells them to retail customers for an average price of $3,100 each. The company's selling and administrative costs for a typical month are presented below: Costs Selling: Cost Formula Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities $944 per month 4,818 per month, plus 4% of sales $62 per piano sold $658 per month $5,082 per month Administrative: Executive salaries $13,436 per month Insurance $692 2,455 per month, plus $44 per piano sold $892 per month per month Clerical Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 60 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. Complete this question by entering your answers in the tabs below equ... Requ Prepare a traditional format income statement for August (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, In Traditional Income Statement or the Month of us Selling and administrative expenses Selling expenses: Total selling expenses Administrative expenses: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities $944 per month 4,818 per month, plus 4% of sales $62 per piano sold $658 $5,082 per month per month Administrative: Executive salaries $13,436 per month Insurance $692 per month 2,455 per month, plus $44 per piano sold Clerical Depreciation of office equipment $892 per month During August, Marwick's Pianos, Inc., sold and delivered 60 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. Complete this question by entering your answers in the tabs below Requ...Requ 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. (A "Net operating loss" should be entered as a negative number.) Show lessA Marwick's Pianos, Inc Contribution Format Income Statement For the Month of August Total Piano Variable expenses Total variable expenses Contribution margin Fixed expenses: Total fixed expenses Required 1 Required 2
