0Marwick's Planos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,492 per unit and then sells themto retall customers for an average price of $2,600 each. The company's selling and administrative costs for a typical month arepresented below:awCostsSelling:AdvertisingSales salaries and commissionsDelivery of pianos to customersUtilitiesDepreciation of sales facilitiesAdministrative:Executive salariesInsuranceClericalDepreciation of office equipmentDuring August, Marwick's Planos, Incorporated, sold and delivered 62 planos.Required:1. Prepare a traditional format Income statement for August.2. Prepare a contribution format Income statement for August. Show costs and revenues on both a total and a per unit basis downthrough contribution margin.Required 1 Required 2Complete this question by entering your answers in the tabs below.showersCost FormulaVariable expenses:Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basisdown through contribution margin. (A "Net operating loss" should be entered as a negative number.)Marwick's Pianos, IncorporatedContribution Format Income StatementFor the Month of AugustTotal variable expensesContribution marginFixed expenses$ 933 per month$ 4,790 per month, plus 5% of salesper piano sold$58$ 659 per month$5,088 per monthTotal foxed expenses$ 13,509 per month$ 712 per month$ 2,481 per month, plus $43 per piano sold$ 907 per monthTotal0Per PianoQ Search< Pr ouTube Mapser 1 i05KcesMcGrawMUProblem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6]Marwick's Planos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,492 per unit and then sells themto retall customers for an average price of $2,600 each. The company's selling and administrative costs for a typical month arepresented below.CostsSelling:AdvertisingSales salaries and commissions.Delivery of pianos to customersUtilitiesDepreciation of sales facilitiesAdministrative:9°Fain showersExecutive salariesInsuranceClericalDepreciation of office equipmentDuring August, Marwick's Planos, Incorporated, sold and delivered 62 planos.Required 1Required 2Cost FormulaRequired: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 downthrough contribution margin.$933 per month$4,790 per month, plus 5% of sales$ 58 per piano soldSelling and administrative expenses:Selling expenses:$ 659 per month$ 5,888 per monthComplete this question by entering your answers in the tabs below.Total selling expensesAdministrative expenses:Total administrative expensesTotal selling and administrative expenses$ 13,509 per month$712 per month$ 2,481 per month, plus $43 per piano sold$907 per monthPrepare a traditional format income statement for August. (A "Net operating loss should be entered as a negative number.)Marwick's Pianos, IncorporatedTraditional Income StatementFor the Month of August000▬▬▬▬Q Search

Income Statement : It is a part of the financial statement of a company in which revenue and…

Marwick's Planos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,492 per unit and then sells them to retall customers for an average price of $2,600 each. The company's selling and administrative costs for a typical month are presented below: W 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 During August, Marwick's Planos, Incorporated, sold and delivered 62 planos. Required 1 Required 2 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. Cost Formula Complete this question by entering your answers in the tabs below. Marwick's Pianos, Incorporated Contribution Format Income Statement For the Month of August Variable expenses: 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 variable expenses Contribution margin Fixed expenses $ 933 per month $4,790 per month, plus 5% of sales $ 58 per piano sold $ 659 per month $ 5,088 per month Total foxed expenses $ 13,509 per month $ 712 per month $ 2,481 per month, plus $43 per piano sold $ 907 per month Total 0 Per Piano

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q