Steins purchases pianos from a large manufacturer for an average cost of $1,509 per unit...
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Steins purchases pianos from a large manufacturer for an average cost of $1,509 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 Cost Formula Selling: Advertising Sales salaries and commissions $4,821 per month, plus 5% of sales Delivery of pianos to customers $59 per piano sold Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance $948 per month $663 per month $4,908 per month $13,493 per month $703 per month $2,532 per month, plus $39 per piano sold Clerical Depreciation of office equipment $937 per month During August, Steins sold and delivered 62 pianos. Required: 1. Prepare a traditional format income statement for August. (8 points) 2. Prepare a contribution format income statement for August. (8points)
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