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 $$1,481$ per unit and then sells them to

retail customers for an average price of $$3,300$ each. The company's selling and administrative costs for a typical month are presented

below:

Costs

Selling:

Advertising

Sales salaries and commissions

Delivery of pianos to customers

Utilities

Depreciation of sales facilities

Administrative:

Executive salaries

Insurance

Clerical

Depreciation of office equipment

Cost Formula

$$967$ per month

$$4,805$ per month, plus $5\%$ of sales

$$62$ per piano sold

$$655$ per month

$$5,069$ per month

$$13,575$ per month

$$684$ per month

$$2,549\}\backslash$mathrm$\{$ per month, plus $$41$ per piano sold

$$912$ per month

During August, Marwick's Pianos, 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 traditional format income statement for August.

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