Proble

Problem $1-21($Algo$)$ Traditional and Contribution Format Income Statements $[$LO$1-6]$

Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $$1,495$ per unit and then sells them to retail customers for an average price of $$3,100$ each. The company's sefling and administrative costs for a typical month are presented below:

$\backslash$table$[[$Costs$,$Cost Formula$],[$Selling:$,$$$96$ per month$],[$Advertising$,$$$4,805$ per month, plus $5\%$ of sales$],[$Sales salaries and commissions,$$63$ per piano sold$],[$Delivery of pianos to customers,$$655$ per month$],[$Utilities$,$$$4,982$ per month$],[$Depreciation of sales facilities,$$13,537$ per month$],[$Administrative:$,$$$13,],[$Executive salaries,$$710$ per month$],[$Insurance$,$$$2,516$ per month, plus $$43$ per piano sold$],[$Clerical$,$$$947$ per month$]]$

During August, Marwick's Pianos, Incorporated, sold and delivered $56$ pianos.

Required:

Prepare a traditional format income statement for August.

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.m $1-21($Algo$)$ Traditional and Contribution Format Income Statements $[$LO$1-6]$

Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $$1,495$ per unit and then sells them to retail customers for an average price of $$3,100$ each. The company's sefling and administrative costs for a typical month are presented below:

$\backslash$table$[[$Costs$,$Cost Formula$],[$Selling:$,$$$96$ per month$],[$Advertising$,$$$4,805$ per month, plus $5\%$ of sales$],[$Sales salaries and commissions,$$63$ per piano sold$],[$Delivery of pianos to customers,$$655$ per month$],[$Utilities$,$$$4,982$ per month$],[$Depreciation of sales facilities,$$13,537$ per month$],[$Administrative:$,$$$13,],[$Executive salaries,$$710$ per month$],[$Insurance$,$$$2,516$ per month, plus $$43$ per piano sold$],[$Clerical$,$$$947$ per month$]]$

During August, Marwick's Pianos, Incorporated, sold and delivered $56$ pianos.

Required:

Prepare a traditional format income statement for August.

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 qu

Marwick's Pianos, Incorporated

Traditional Income Statement

For the Month of August

$\backslash$table$[[$Sales$,,],[$Cost of goods sold,,$],[$Gross margin,,$],[$Selling and administrative expenses:,,$],[$Selling expenses:,,$],[$Advertising$,,],[$Sales salaries and commissions,,$],[$Delivery of pianos,,$],[$Utilities$,,],[$Depreciation of sales facilities,,$],[,,,],[,,,],[$Total selling expenses,$0,],[$Administrative expenses:,,$],[$Executive salaries,,$],[$Insurance$,,],[$Clerical$,,],[$Depreciation of office equipment,,$],[,,],[,,],[$Total administrative expenses,$0,],[$Total selling and administrative expenses,,$0],[$Net operating income,,$]]$estion by entering your answers in the tabs below.