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Marwick's Pianos, Inc. Traditional Income Statement For the Month of August oints Skipped Selling and administrative expenses Selling expenses eBook Print References Total selling expenses Administrative expenses Total administrative expenses Total selling and administrative expenses Required 2> Type here to search 門5%

Answer 1

1.

Marwick's Pianos Inc. Traditional Income Statement For the month ended August 31
	$	$
Sales Revenue		125,000
Cost of Goods Sold		98,000
Gross Profit		27,000
Selling and Administrative Expenses
Selling Expenses
Advertising	700
Sales Salaries and Commissions	10,950
Delivery Expenses	1,200
Utilities	350
Depreciation of Sales Facilities	800
Total Selling Expenses		14,000
Administrative Expenses
Executive Salaries	2,500
Insurance	400
Clerical	1,800
Depreciation of Office Equipment	300
Total Administrative Expenses		5,000
Total Selling and Administrative Expenses		19,000
Net Operating Income		$ 8,000

2.

Marwick's Pianos Inc. Contribution Margin Income Statement For the month ended August 31
	$	$
Sales		125,000
Less: Variable Expenses
Cost of Goods Sold	98,000
Sales Commission Expense	10,000
Delivery Expense	1,200
Clerical	800
Total Variable Expenses		110,000
Contribution Margin		15,000
Fixed Expenses
Advertising Expense	700
Sales Salaries Expense	950
Utilities Expense	350
Salaries Expense	3,500
Insurance Expense	400
Depreciation Expense: Sales Facilities	800
Depreciation Expense: Office Equipment	300
Total Fixed Expenses		7,000
Net Operating Income		$ 8,000