Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,513 per unit and then sells them to retail customers for an average price of $2,400 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$937 per month
Sales salaries and commissions	$4,823 per month, plus 3% of sales
Delivery of pianos to customers	$61 per piano sold
Utilities	$666 per month
Depreciation of sales facilities	$4,996 per month
Administrative:
Executive salaries	$13,590 per month
Insurance	$710 per month
Clerical	$2,499 per month, plus $40 per piano sold
Depreciation of office equipment	$850 per month

During August, Marwicks Pianos, Incorporated, sold and delivered 59 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.

• 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 Pianos, Incorporated
Traditional Income Statement
For the Month of August
Selling and administrative expenses:
Selling expenses:
Total selling expenses	0
Administrative expenses:
Total administrative expenses	0
Total selling and administrative expenses		0

• 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, Incorporated
Contribution Format Income Statement
For the Month of August
	Total	Per Piano
Variable expenses:
Total variable expenses	0	0
Contribution margin
Fixed expenses:
Total fixed expenses	0