Marwick's Planos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,500 per them to retail customers for an average price of $2,900 each. The company's selling and administrative costs f presented below:
Marwick's Planos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,500 per them to retail customers for an average price of $2,900 each. The company's selling and administrative costs f presented below:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6]
Marwick's Pianos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,500 per unit and then se
them to retail customers for an average price of $2,900 each. The company's selling and administrative costs for a typical mont
presented below:
Costs
Selling:
Advertising
Sales salaries and commissions
Delivery of pianos to customers
Utilities
Depreciation of sales facilities
Administrative:
Cost Formula
Executive salaries
Insurance
Clerical
Depreciation of office equipment
During August, Marwick's Pianos, Incorporated, sold and delivered 65 pianos.
$ 964 per month
$4,817 per month, plus 6% of sales
$59 per piano sold i
$ 655 per month
$ 4,998 per month
$ 13,496 per month
$689 per month
$ 2,473 per month, plus $39 per piano sold
$939 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 do
through contribution margin
Complete this question by entering your answers in the tabs below.
Marwick's Pianos, Incorporated
Contribution Format Income Statement
For the Month of August
Required 1 Required 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. (A "Net operating loss" should be entered as a negative number.)
Total
Per Piano](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe01e2053-8424-4ef5-83d0-e7e46a72a928%2Fe5bde27b-3d25-427b-a4c4-ea76bada3aee%2Fn1aqs19y_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6]
Marwick's Pianos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,500 per unit and then se
them to retail customers for an average price of $2,900 each. The company's selling and administrative costs for a typical mont
presented below:
Costs
Selling:
Advertising
Sales salaries and commissions
Delivery of pianos to customers
Utilities
Depreciation of sales facilities
Administrative:
Cost Formula
Executive salaries
Insurance
Clerical
Depreciation of office equipment
During August, Marwick's Pianos, Incorporated, sold and delivered 65 pianos.
$ 964 per month
$4,817 per month, plus 6% of sales
$59 per piano sold i
$ 655 per month
$ 4,998 per month
$ 13,496 per month
$689 per month
$ 2,473 per month, plus $39 per piano sold
$939 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 do
through contribution margin
Complete this question by entering your answers in the tabs below.
Marwick's Pianos, Incorporated
Contribution Format Income Statement
For the Month of August
Required 1 Required 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. (A "Net operating loss" should be entered as a negative number.)
Total
Per Piano
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