Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $$1,491$ per unit and then sells them to retail customers for an average price of $$2,000$ each. The company's selling and administrative costs for a typical month are presented below:

$\backslash$table$[[$Costs$,$Cost Formula$],[$Selling:$,],[$Advertising$,$$$968$ per month$],[$Sales salaries and commissions,$$4,780$ per month, plus $5\%$ of sales$],[$Delivery of pianos to customers,$$59$ per piano sold$],[$Utilities$,$$$633$ per month$],[$Depreciation of sales facilities,$$4,966$ per month$],[$Administrative:$,],[$Executive salaries,$$13,584$ per month$],[$Insurance$,$$$685$ per month$],[$Clerical$,$$$2,512$ per month, plus $$43$ per piano sold$],[$Depreciation of office equipment,$$866$ per month$]]$

During August, Marwick's Pianos, Incorporated, sold and delivered $55$ pianos.

Required:

Prepare a traditional format income statement for August.

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.

Note: A "Net operating loss" should be entered as a negative number.

Marwick's Pianos, Incorporated

Traditional Income Statement

For tha Manth of Auriuet

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Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $$1,491$ per unit and then sells them to retail customers for an average price of $$2,000$ each. The company's selling and administrative costs for a typical month are presented below:

$\backslash$table$[[$Costs$,$Cost Formula$],[$Selling:$,],[$Advertising$,$$$968$ per month$],[$Sales salaries and commissions,$$4,780$ per month, plus $5\%$ of sales$],[$Delivery of pianos to customers,$$59$ per piano sold$],[$Utilities$,$$$633$ per month$],[$Depreciation of sales facilities,$$4,966$ per month$],[$Administrative:$,],[$Executive salaries,$$13,584$ per month$],[$Insurance$,$$$685$ per month$],[$Clerical$,$$$2,512$ per month, plus $$43$ per piano sold$],[$Depreciation of office equipment,$$866$ per month$]]$

During August, Marwick's Pianos, Incorporated, sold and delivered $55$ pianos.

Required:

Prepare a traditional format income statement for August.

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.

Note: A "Net operating loss" should be entered as a negative number.

Marwick's Pianos, Incorporated

Traditional Income Statement

For tha Manth of Auriuet

Prev

$2$ of $5$

Next