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

Marwick$$s Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $$1,512$ per unit and then sells them to retail customers for an average price of $$2,700$ each. The company$$s selling and administrative costs for a typical month are presented below:

Costs Cost Formula

Selling:

Advertising $$930$ per month

Sales salaries and commissions $$4,798$ per month, plus $5\%$ of sales

Delivery of pianos to customers $$60$ per piano sold

Utilities $$643$ per month

Depreciation of sales facilities $$4,928$ per month

Administrative:

Executive salaries $$13,488$ per month

Insurance $$707$ per month

Clerical $$2,509$ per month, plus $$43$ per piano sold

Depreciation of office equipment $$933$ per month

During August, Marwick$$s Pianos, Incorporated, sold and delivered $59$ pianos.CreatecdPrepare a traditional format income statement for August.

Note: A "Net operating loss" should be entered as a negative number.