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Problem 1-21 Traditional and Contribution Format Income Statements (LO1-6) Marwick's Planos, Inc., purchases planos from a large manufacturer for an average cost of $1,520 per

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Problem 1-21 Traditional and Contribution Format Income Statements (LO1-6) Marwick's Planos, Inc., purchases planos from a large manufacturer for an average cost of $1,520 per unit and then sells them to customers for an average price of $3,100 each. The company's selling and administrative costs for a typical month are presentec 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 equipmen $934 per month $4,816 per month, plus 68 of sales 658 per piano sold $ 657 per month $4,968 per month $13,560 per month $701 per month $2,515 per month, plus $44 per piano sold $875 per month During August, Marwick's Pianos, Inc., sold and delivered 64 planos Required: 1. Prepare a traditional format income statement for August. 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 Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses: Total variable expenses Contribution margin Fixed expenses: Total variable expenses Contribution margin Fixed expenses: Total fixed expenses

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