Reference no: EM132537272

Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,515 per unit and then sells them to retail customers for an average price of $3,200 each. The company's selling and administrative costs for a typical month are presented below: Costs                                        Cost Formula       

Selling:

Advertising                               $935 per mont

hSales salaries and commissions      $4,787 per month, plus 3% of sales

Delivery of pianos to customers        $61 per piano sold

Utilities                                         $645 per month

Depreciation of sales facilities                  $5,038 per month

Administrative:

Executive salaries                                   $13,547 per month

Insurance                                              $708 per month

Clerical                                                   $2,507 per month, plus $45 per piano sold

Depreciation of office equipment                $902 per month

• During August, Marwick's Pianos, Inc., sold and delivered 57 pianos.

Required:

Question 1. need traditional format income statement for August.

Question 2. need contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.