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Skip to main content Chapter 1 Homework Problems Answer Saved Help opens in a new window Save & Exit Submit ! You skipped this question in the previous attempt. Item 3 10 points eBook p Print References Check my work Check My Work button is now enabled 1 Item 3 Item 3 10 points Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,501 per unit and then sells them to retail customers for an average price of $2,700 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 941 per month Sales salaries and commissions $ 4,797 per month, plus 5% of sales Delivery of pianos to customers $ 58 per piano sold Utilities $ 643 per month Depreciation of sales facilities $ 5,048 per month Administrative: Executive salaries $ 13,536 per month Insurance $ 709 per month Clerical $ 2,524 per month, plus $44 per piano sold Depreciation of office equipment $ 891 per month During August, Marwick’s Pianos, Inc., 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. Garrison 16e Rechecks 2017-08-07 Next Visit question map Question 3 of 4 Total 3 of 4 Prev McGraw Hill Education

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Traditional Income Statement - Marwick Pianos Inc. Particulars Details Amount Sales (2700*63) $170,100.00 Less: Cost of Goods Sold (1501*63) $94,563.00 Gross Profit $75,537.00 Sellling Expenses: Advertising $941.00 Sales Salaries and Commissions (4797 + 5% of 170100) $13,302.00 Delivery of Pianos to customers (58*63) $3,654.00 Utilities $643.00 Depreciation of Sales Facilities $5,048.00 $23,588.00 Administrative Expenses: Executive Salaries $13,536.00 Insurance $709.00 Clerical (2524 + 44*63) $5,296.00 Depreciation of office equipment $891.00 $20,432.00 Net Income $31,517.00

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