Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $ per unit and then sells them to
retall customers for an average pice of $ each. The company's selling and administrative costs for a typlcal month are presented
below:
Costs
Selling:
Advertising
Sates salartes and conmissions
Delivery of planos to custoners
Utilities
Deprectation of sales facilities
Adninistrative:
Cxecutive salarles
Insurance
Clericas
Depreciation of office equipnent
Cost Fornula
$ per wonth
$ per bonth, plus $ of sales
$ per piano sold
$ per month
$ per month
$ per month
$ per month
$ per month, plus $ per pleno sold
$ per month
During August, Marwick's Planos, Incorporated, sold and delvered planos.
Required:
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 perunit basis down
through contribution margin.
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.
