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
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcaf1eba9-5e5f-4652-9bd1-56b23f9beaf1%2F2119b323-1f3d-44e2-9d8c-15b00f3fb938%2Fjstfry_processed.jpeg&w=3840&q=75)
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
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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