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Marwicks Pianos Incorporated purchases pianos from a manufacture for an average cost of $1514 per unit and then sells them to retail customers for an
Marwicks Pianos Incorporated purchases pianos from a manufacture for an average cost of $1514 per unit and then sells them to retail customers for an average price of $2400 each. The companys selling and administrative costs for a typical month are presented below Costs Cost Formula Selling: Advertising $932 per month Sales salaries and commissions $4785 per month plus 3 percent of sales Delivery of pianos to customers $60 per piano sold Utilities $639 per month Depreciation of sales facilities $4956 per month Administrative: Executive salaries $13,551 per month Insurance $710 per month Clerical $2467 per month plus $44 per pianon sold Depreciation of office equipment $902 per month During August, Marwicks Pianos, Incorporated sold and delivered 58 pianos. Required prepare a traditional format income statement for august Prepare a contribution format income statement for August. Show costs and revenues on both total and per unit basis down through a contribution margin
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