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Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,508 per unit and then sells them to retail customers for

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Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,508 per unit and then sells them to retail customers for an average price of $2,700 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula + S to Costs Selling: Advertising Sales salaries and commissions Delivery of pianos customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $ 9 4 6 per month 4,8 2 9 per month, plus 6 % of sales $6 1 per piano sold $ 6 3 1 per month $ 5,0 18 per month ences per $ 1 3 5 0 9 per month $ 6 8 6 month 2.5 4 6 per month, plus "S 4 3 per piano sold $ 8 8 0 per month $ During August, Marwick's Pianos, Inc., sold and delivered 62 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. 1 ces Required Required 2 Prepare a traditional format income statement for August. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Sales Selling and administrative expenses Selling expenses Sales Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Per Total Piano Variable expenses: es 0 0 Total variable expenses Contribution margin Fixed expenses: + Total fixed expenses

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