Question: Please help me solve the following accounting question. Problem 2-19 Contribution Format versus Traditional Income Statement [L02-6] Marwick's Pianos, |nc., purchases pianos from a large

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Please help me solve the following accounting question.



Problem 2-19 Contribution Format versus Traditional Income Statement [L02-6] Marwick's Pianos, |nc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,482 each from the manufacturer. Marwick's Pianos, lnc., sells the pianos to its customers at an average price of $3,400 each. The selling and administrative costs that the company incurs in a typical month are presented below: Costs Cost Formula Selling: Advertising $951 per month Sales salaries and commissions $4,772 per month, plus 5% of sales Delivery of pianos to customers $62 per piano sold Utilities $635 per month Depreciation of sales facilities $4,954 per month Administrative: Executive salaries $13,600 per month Insurance $707 per month Clerical $2,542 per month, plus $39 per piano sold Depreciation of ofce equipment $889 per month During August, Marwick's Pianos, Inc., sold and delivered 55 pianos. 1. Prepare an income statement for Marwick's Pianos, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number.) Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses 2. Prepare an income statement for ManNick's Pianos, Inc., for August, this time using the contribution format, with costs organized by behavior. 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.) Van-able p - Total variable expenses _- coma-eaten margin _ _ Total xed expenses
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