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 $$1,506$ per unit and then sells them to

etail customers for an average price of $$2,200$ each. The company's seling and administrathe costs for a typical month are

presented below:

Costs

Selling:

Advertising $ $$967$ per nonth

Sates salaries and connissions $$4,795$ per nonth, plus $4\%$ of sales

Delivery of planos to custoners $ $$52$ per plano sold

Utilities

Depreciation of sales facilities

Adninistrative:

Executive salaries $$$3,598$ per month

Insurance Clertcal $$713$ per nonth

Clerical $$$2,451$ per nonth, plus $$45$ per piano sold

Depreciation of office equipment

During August, Marwick's Planos, Incorporated, sold and delivered $61$ 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.

Prepare a contribution format income statoment for August. Show costs and revenues on both a total and a per$-$unit basis

down through contribution margin.

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