Problem $1-21$ Traditional and Contribution Format Income Statements $[$LO$1-6)$Marwick$\text{'}$s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $$1,517$ per unit and then sell them to retail customers for an average price of $$3,200$ each. The company's selling and administrative costs for a typical month are presented below:CostsCost FormulaSelling:Advertising$$955$ per monthSales salaries and commissions$$4,790$ per month, plus $5\%$ of salesDelivery of pianos to customers $$58$ per piano soldUtilities$$654$ per monthDepreciation of sales facilities$$4,941$ per monthAdministrative:Executive salariesInsuranceClericalDepreciation of office$$13,419$ per month$$706$ per month$2,535$ per month, plus $$38$ per piano sold$$894$ per monthequipmentDuring August, Marwick's Pianos, Inc., sold and delivered $60$ pianos.Required:$1.$ Prepare a traditional format income statement for August$\mathrm{.}2.$ 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

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

Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $$1,517$ per unit and then $5$ them to retail customers for an average price of $$3,200$ each. The company's selling and administrative costs for a typical month are presented below:

$\backslash$table$[[$Costs$,$Cost Formula$],[$Selling:$,$$$955$ per month$],[$Advertising$,$$$4,790$ per month, plus $5\%$ of sales$],[$Sales salaries and commissions,$$5$ per piano sold$],[$Delivery of pianos to customers,$$654$ per month$],[$Utilities$,$$$4,941$ per month$],[$Depreciation of sales,$],[$facilities$,$$$13,419$ per month$],[$Administrative:$,$$$706$ per month$],[$Executive salaries,$$2,535$ per month, plus $$38$ per piano$],[$Insurance$,$$$894$ per month$],[$Clerical$,]]$

During August. Marwick's Pianos, Inc, sold and delivered $60$ planos.

Required:

Prepare a traditional format income statement for August.