Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per...

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Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $2,100 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $960 per month Sales salaries and commissions Delivery of pianos to customers Utilities $4,823 per month, plus 5% of sales $57 per piano sold $656 per month Depreciation of sales facilities Administrative: $5,051 per month Executive salaries $13,512 per month Insurance $698 per month Clerical $2,530 per month, plus $40 per piano sold $946 per month Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 56 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 Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses 0 0 0 Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Variable expenses: Total variable expenses Contribution margin Fixed expenses: Total fixed expenses 0 0 Per Piano 0 Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,499 per unit and then sells them to retail customers for an average price of $2,100 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $960 per month Sales salaries and commissions Delivery of pianos to customers Utilities $4,823 per month, plus 5% of sales $57 per piano sold $656 per month Depreciation of sales facilities Administrative: $5,051 per month Executive salaries $13,512 per month Insurance $698 per month Clerical $2,530 per month, plus $40 per piano sold $946 per month Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 56 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 Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses 0 0 0 Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Variable expenses: Total variable expenses Contribution margin Fixed expenses: Total fixed expenses 0 0 Per Piano 0

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