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8 Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,482 per unit and then sells them to retail customers for an average price of $2,800 each. The companys selling and administrative costs for a typical month are presented below: 10 points Costs Selling Cost Formula Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities $959 per month $4,796 per month, plus 5% of sales $59 per piano sold $637 per month $5,016 per month eBook Print Administrative: References Executive salaries Insurance Clerical Depreciation of office equipment $13,589 per month $704 per month $2,547 per month, plus $37 per piano sold $928 per month During August, Marwicks Pianos, Inc., sold and delivered 64 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. Complete this question by entering your answers in the tabs below

Check my work 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. 10 points Complete this question by entering your answers in the tabs below eBook Required 1 Required 2 Print 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. (A Net operating loss should be entered as a negative number.) Marwicks Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano ales S 179,200$2,800 Variable expenses: Sales salaries and commissi Delivery of pianos Clerical 8,960 3,776 2,368 140 59 37 on5

Check my wo 8 Marwicks Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piand 10 points ales S 179,200$ 2,800 Variable expenses Sales salaries and commissions Delivery of pianos Clerical 8,960 3,776 2,368 140 59 37 eBook Print References Total variable expenses Contribution margin Fixed expenses: 15,104 236 S 164,096 $ 2,564 Utilities Depreciation of sales facilities Executive salaries Insurance 959 637 5,016 13,589 704

8 Delivery of pianos Clerical 3,776 59 2,368 37 10 polnts 236 Total variable expenses Contribution margin Fixed expenses: 15,104 $ 164,096 S 2,564 eBook Print References Advertising Utilities Depreciation of sales facilities Executive salaries Insurance Depreciation of office equipment 959 637 5,016 13,589 704 928 Total fixed expenses et operating income 21,833 $ 142,263

What should "Net Operating Income" be?

Please show all work.

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Answer #1

Answer to Requirement 1 MARWICKS PIANOS, INC Traditional Income Statement For the Month of August Sales ($2,800 64) Cost of Goods Sold ($1,482 64) Gross Profit Selling and Administrative Expenses: Selling Expenses: Advertising Sales Salaries and Commissions ($4,796 + $179,200*5%) Utilities Depreciation of Sales Facilities Delivery of Pianos ($59* 64) Total Selling Expenses Administrative Expenses: Insurance Executive Salaries Depreciation of Office Equipment Clerical ($2,518+ $37 *64) Total Administrative Expenses Total Selling and Administrative Expenses Net Operating Income 179200 94848 84352 959 13756 637 5016 3776 24144 704 13589 928 4915 20136 44280 40072

Answer to Requirement 2 MARWICKS PIANOS, INC. Contribution Format Income Statement For the Month of August Total Per Piano Sales Variable Expenses: Clerical Sales Commissions Delivery of Pianos Cost of Goods Sold Total Variable Expenses Contribution Margin Fixed Expenses: Advertising Depreciation of Sales Facilities Utilities Executive Salaries Insurance Depreciation of Office Equipment Clerical Sales Salaries Total Fixed Expenses Net Operating Income 179200 2800 2368 8960 3776 94848 109952 69248 37 140 59 1482 1718 1082 959 5016 637 13589 704 928 2547 4796 29176 40072

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