32esMarwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,495 per unit and then sells them toretail customers for an average price of $2,500 each. The company's selling and administrative costs for a typical month arepresented below:CostsSelling:AdvertisingSales salaries and commissionsDelivery of pianos to customersUtilitiesCost Formula$969 per month$4,826 per month, plus 6% of sales$59 per piano sold$631 per month$5,018 per monthDepreciation of sales facilitiesAdministrative:Executive salariesInsuranceClericalDepreciation of office equipmentDuring August, Marwick's Pianos, Incorporated, sold and delivered 63 pianos.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 2$13,576 per month$697 per month$2,519 per month, plus $36 per piano sold$879 per monthComplete this question by entering your answers in the tabs below.Prepare a traditional format income statement for August.Note: A "Net operating loss" should be entered as a negative number.

Income statement is a financial statement that shows profitability, total revenue and total…

Answered: S Marwick's Pianos, Incorporated,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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