Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Pianos, Inc., purchases planos from a large manufacturer for an average cost of $1,510 per unit and then sells them to re customers for an average price of $2,700 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula costs Selling: Advertising Sal ala and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance clerical Depreciation of office equipment $952 per month $4,791 per month, plus of sales $62 per piano sold $639 per month $4,939 per month $13,434 per month $690 per month $2,452 per month, plus $35 per piano sold $890 per month During August, Marwick's Pianos, Inc., sold and delivered 64 pianos. 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 Prepare a traditional format income statement for August. (A "Net operating loss" should be e Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Sales $ 151,200 X 83,328 x 67,872 x Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses: Advertising Sales salaries and commissions Utilities Depreciation of sales facilities Delivery of pianos $ 952 10,872 x 662 X 4,929 X 3,248 X 20,663 Total selling expenses Administrative expenses: Insurance 697 Executive salaries 13,455 903 Depreciation of office equipment DesildLLUS 4,929 X ts Delivery of pianos 3,248 x 20,663 Total selling expenses Administrative expenses: Insurance Executive salaries Depreciation of office equipment Clerical 697 X 13,455 x 903 X 4,872 x 19,927 Total administrative expenses Total selling and administrative expenses Net operating income 40,590 $ 27,282 Required Require 2 Prepare a contri format income statement for August. Show costs and revenue down through contribution margin. (A "Net operating loss" should be entered as a ne Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August 33 ints Total Per Piano 2,700 $ 172,800 2,240 35 Sales Variable expenses: Clerical Sales salaries and commissions Delivery of planos Cost of goods sold 108 6,912 3,968 62 96,640 1,510 1,715 109,760 $ 63,040 985 Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation of sales facilities Utilities 952 4,939