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Marwick's Pianos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,515 per unit and then sells them to retall customers for

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Marwick's Pianos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,515 per unit and then sells them to retall customers for an average price of $2,800 each. The company's selling and administrative costs for a typical month are presented below: Coats Cont Formula Selling: Advertising $954 per month Sales salaries and commissions $4,823 per month, plus 39 of sales Delivery of pianos to customers $60 per piano sold Utilities $662 per month Depreciation of sales facilities $5,025 per month Administrative: Executive salaries $13, 405 per month Insurance $690 per month clerical $2,464 per month, plus $45 per piano mold Depreciation of office equipment $868 per month During August, Marwick's Planos, Incorporated, sold and delivered 58 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 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 Planos, Incorporated Traditional Income Statement For the Month of August Marwick's Pianos, Incorporated Traditional Income Statement For the Month of August Sales $ 125,000 98,000 27,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Sales salaries and commissions Delivery of planos Delivery of planos Utilities Depreciation of sales facilities $ 10,950 12,000 22,950 Total selling expenses Administrative expenses Total administrative expenses 0 Total selling and administrative expenses 22,950 Marwick's Planos, Incorporated Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses 0 0 Total variable expenses Contribution margin Fixed expenses Total fixed expenses 0

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