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Marwick's Planos, Inc., purchases planos from a large manufacturer for an average cost of $1,518 per unit and then sells them to retail customers for

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Marwick's Planos, Inc., purchases planos from a large manufacturer for an average cost of $1,518 per unit and then sells them to retail customers for an average price of $2,400 each. The company's selling and administrative costs for a typical month are presented below Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $955 per month $4,817 per month, plus 4% of sales $59 per piano sold $664 per month $5,036 per month $13,557 per month $711 per month $2,550 per month, plus $38 per piano sold $871 per month During August, Marwick's Planos, Inc., sold and delivered 59 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 Check Prepare a traditional format income statement for August. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses 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, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses Total variable expenses Contribution maroin Total variable expenses Contribution margin Fixed expenses: Total fixed expenses

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