Marwick's Planos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,509 per unit and th

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Marwick S Planos Incorporated Purchases Pianos From A Large Manufacturer For An Average Cost Of 1 509 Per Unit And Th 1 (41.23 KiB) Viewed 10 times

Marwick's Planos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,509 per unit and then sells them to retail customers for an average price of $2,600 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 Cost Formula $935 per month $4,796 per month, plus 5% of sales $63 per piano soldi $668 per month $4,977 per month Depreciation of sales facilities. Administrative: Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Planos, Incorporated, sold and delivered 56 planos. $13,435 per month $712 per month $2,532 per month, plus $41 per piano sold $888 per month Required: 1. Prepare a traditional format income statement for August. 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. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Prepare a traditional format income statement for August. (A "Net operating loss" should be entered as a negative number.)