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Marwick$$s Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $$1,519$ per unit and then sells them to retail customers for an average price of $$3,000$ each. The company$$s selling and administrative costs for a typical month are presented below:

Costs Cost Formula

Selling:

Advertising $$936$ per month

Sales salaries and commissions $$4,796$ per month, plus $5\%$ of sales

Delivery of pianos to customers $$59$ per piano sold

Utilities $$641$ per month

Depreciation of sales facilities $$5,057$ per month

Administrative:

Executive salaries $$13,434$ per month

Insurance $$719$ per month

Clerical $$2,472$ per month, plus $$37$ per piano sold

Depreciation of office equipment $$915$ per month

During August, Marwick$$s Pianos, Incorporated, sold and delivered $56$ pianos.

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 per$-$unit basis down through contribution margin Prepare a traditional format income statement for August.

Note: A "Net operating loss" should be entered as a negative number. 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.

Note: A "Net operating loss" should be entered as a negative number.

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