Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $2,450 per unit and then sells them to retail customers for an average price of $3,125 each. The company's selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$700 per month
Sales salaries and commissions	$950 per month, plus 8% of sales
Delivery of pianos to customers	$30 per piano sold
Utilities	$350 per month
Depreciation of sales facilities	$800 per month
Administrative:
Executive salaries	$2,500 per month
Insurance	$400 per month
Clerical	$1,000 per month, plus $ 20 per piano sold
Depreciation of office equipment	$300 per month

During August, Marwick's Pianos, Incorporated, sold and delivered 40 pianos.

Required:

2. Build a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.

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, Incorporated
Contribution Format Income Statement
For the Month of August
	Total	Per Piano
Sales	$125,000	$3,125
Variable expenses:
Cost of goods sold	98,000	2,450
Sales salaries and commissions	10,000	250
Delivery of pianos	1,200	30
Clerical	800	20
Total variable expenses	110,000	2,750
Contribution margin	$15,000	$375
Fixed expenses:
Advertising	700
Sales salaries and commissions	950
Utilities	350
Depreciation of sales facilities	800
Executive salaries	2,500
Insurance	400
Clerical	1,000
Total fixed expenses	6,700
Net operating income	$8,000

What need to be added, answer shows not complete?