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Marwick's Pianos, Inc., purchases planos 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 planos 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 $2,400 each. The company's selling and administrative costs for a typical month are presented below: Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $949 per month $4,793 per month, plus 4% of sales $61 per piano sold $632 per month $5,041 per month $13,558 per month $689 per month $2,486 per month, plus $44 per piano sold $945 per month During August, Marwick's Planos, Inc, sold and delivered 64 planos. 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. Required 1 Required 2 Prepare a traditional format income statement for August. (A "Net operating loss" should be entered as a negative number.) Marwick's Planos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses 0 Total selling expenses Administrative expenses 0 Total administrative expenses Total selling and administrative expenses 0 Required Required 2 > Required 1 Required 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. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Plano Variable expenses 0 Total variable expenses Contribution margin Fixed expenses Total fixed expenses 0

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