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Problem 1-21 (Static) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $2,450 per unit and then sell hem to retail customers for an average price of $3125 each. The company's selling and administrative costs for a typical month resented below: Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Cost Formula $700 per month $958 per month, plus 8% of sales $ 30 per piano sold $350 per month $ 800 per month Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment ring August, Marwick's Pianos, Incorporated, sold and delivered 40 planos. A $ 2,500 per month $ 400 per month $1,000 per month, plus $20 per piano sold $ 300 per month quired: repare 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 ough contribution margin. Complete this question by entering your answers in the tabs below. Prev 19 of 19 Next

Problem 1-21 (Static) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $2,450 per unit and then sell hem to retail customers for an average price of $3125 each. The company's selling and administrative costs for a typical month resented below: Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Cost Formula $700 per month $958 per month, plus 8% of sales $ 30 per piano sold $350 per month $ 800 per month Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment ring August, Marwick's Pianos, Incorporated, sold and delivered 40 planos. A $ 2,500 per month $ 400 per month $1,000 per month, plus $20 per piano sold $ 300 per month quired: repare 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 ough contribution margin. Complete this question by entering your answers in the tabs below. Prev 19 of 19 Next

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 1-21 (Static) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $2,450 per unit and then sells them to retail customers for an average price of $3,125 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 Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment uring August, Marwick's Pianos, Incorporated, sold and delivered 40 pianos. $700 per month $958 per month, plus 8% of sales $ 30 per piano sold $350 per month $800 per month Mixed equired: 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 dow ough contribution margin. A $ 2,500 per month $ 400 per month $ 1,000 per month, plus $20 per piano sold $ 300 per month Complete this question by entering your answers in the tabs below. < Prev 19 of 19. www Next
Transcribed Image Text:Problem 1-21 (Static) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $2,450 per unit and then sells them to retail customers for an average price of $3,125 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 Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment uring August, Marwick's Pianos, Incorporated, sold and delivered 40 pianos. $700 per month $958 per month, plus 8% of sales $ 30 per piano sold $350 per month $800 per month Mixed equired: 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 dow ough contribution margin. A $ 2,500 per month $ 400 per month $ 1,000 per month, plus $20 per piano sold $ 300 per month Complete this question by entering your answers in the tabs below. < Prev 19 of 19. www Next
look sk int ences Required 1 Required 2 Prepare a traditional format income statement for August. Marwick's Pianos, Incorporated Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses nequiEVA Required & Prepare a contribution format income statement for August. Show costs down through contribution margin. Marwick's Pianos, Incorporated Contribution Format Income Statement For the Month of August Variable expenses: Total variable expenses Contribution margin Fixed expenses: Total Per Piano
Transcribed Image Text:look sk int ences Required 1 Required 2 Prepare a traditional format income statement for August. Marwick's Pianos, Incorporated Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses nequiEVA Required & Prepare a contribution format income statement for August. Show costs down through contribution margin. Marwick's Pianos, Incorporated Contribution Format Income Statement For the Month of August Variable expenses: Total variable expenses Contribution margin Fixed expenses: Total Per Piano
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