S Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,495 per unit and then sells them to retail customers for an average price of $2,500 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 Depreciation of sales facilities Administrative: Cost Formula $969 per month $4,826 per month, plus 6% of sales $59 per piano sold $631 per month $5,018 per month Executive salaries Insurance Clerical Depreciation of office equipment During 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 down through contribution margin. Required 1 Required 2 $13,576 per month $697 per month $2,519 per month, plus $36 per piano sold $879 per month Complete 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.
S Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,495 per unit and then sells them to retail customers for an average price of $2,500 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 Depreciation of sales facilities Administrative: Cost Formula $969 per month $4,826 per month, plus 6% of sales $59 per piano sold $631 per month $5,018 per month Executive salaries Insurance Clerical Depreciation of office equipment During 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 down through contribution margin. Required 1 Required 2 $13,576 per month $697 per month $2,519 per month, plus $36 per piano sold $879 per month Complete 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![32
es
Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,495 per unit and then sells them to
retail customers for an average price of $2,500 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
$969 per month
$4,826 per month, plus 6% of sales
$59 per piano sold
$631 per month
$5,018 per month
Depreciation of sales facilities
Administrative:
Executive salaries
Insurance
Clerical
Depreciation of office equipment
During 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 down
through contribution margin.
Required 1 Required 2
$13,576 per month
$697 per month
$2,519 per month, plus $36 per piano sold
$879 per month
Complete 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22af0c68-082c-469c-b3c4-30c724d4709c%2F2172762c-730c-437f-ae3a-54cd011c3fb3%2Fv4raxe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:32
es
Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,495 per unit and then sells them to
retail customers for an average price of $2,500 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
$969 per month
$4,826 per month, plus 6% of sales
$59 per piano sold
$631 per month
$5,018 per month
Depreciation of sales facilities
Administrative:
Executive salaries
Insurance
Clerical
Depreciation of office equipment
During 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 down
through contribution margin.
Required 1 Required 2
$13,576 per month
$697 per month
$2,519 per month, plus $36 per piano sold
$879 per month
Complete 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.
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