Marwick's Planos, Inc., purchases planos from a large manufacturer for an average cost of $1,491 per unit and then sells them to retail customers for an average price of $2,600 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 $935 per month $4,791 per month, plus 5X of sales $63 per piano sold $648 per month $4,919 per month $13,500 per month $7e3 per month $2,452 per month, plus $40 per piano sold $913 per month During August, Marwick's Planos, 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 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 Pianos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses Seling expenses: Total selling expenses Administrative expenses Total administrative expenses Total selling and administrative expenses Marwick's Planos, Inc., purchases planos from a large manufacturer for an average cost of $1,491 per unit and then sells them to retail customers for an average price of $2.600 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 planos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $935 per month $4,791 per month, plus 5% of sales $63 per piano sold $648 per month $4,919 per month $13,509 per month $703 per month $2,452 per month, plus $40 per piano sold $913 per month During August, Marwick's Planos, 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 basis down through contribution margin. Complete this question by entering your answers in the tabs below. 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 margin Fixed expenses Total fixed expenses
