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Problem 1-21 (Algo) Traditional and Contribution Format Income Statements (L01-6) Marwick's Planos, Inc. purchases planos from a large manufacturer for an average cost of $1.512

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Problem 1-21 (Algo) Traditional and Contribution Format Income Statements (L01-6) Marwick's Planos, Inc. purchases planos from a large manufacturer for an average cost of $1.512 per unit and then sells them to retall customers for an average price of $2,900 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $943 per conth Sales salaries and commissions $4,787 per month, plus of sales Delivery of pianos to customers 563 per piano sold utilities 1651 per month Depreciation of sales facilities 55.72 per month Administrative Executive salaries $13,592 per month Insurance $714 per month Clerical $2,476 per nonth, plus $40 per piano sold Depreciation of office equipent $940 per month ch During August, Marwick's Planon, Inc, sold and delivered 63 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 batis down through contribution margin Complete this question by entering your answers in the tabs below. Required 1 Required 2 Problem 1-21 (Algo) Traditional and Contribution Format Income Statements (L01-6) Marwick's Planos, Inc. purchases planos from a large manufacturer for an average cost of $1.512 per unit and then sells them to retall customers for an average price of $2,900 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $943 per conth Sales salaries and commissions $4,787 per month, plus of sales Delivery of pianos to customers 563 per piano sold utilities 1651 per month Depreciation of sales facilities 55.72 per month Administrative Executive salaries $13,592 per month Insurance $714 per month Clerical $2,476 per nonth, plus $40 per piano sold Depreciation of office equipent $940 per month ch During August, Marwick's Planon, Inc, sold and delivered 63 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 batis down through contribution margin Complete this question by entering your answers in the tabs below. Required 1 Required 2

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