Marwick$$s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $$1,519$ 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 $$960$ per month

Sales salaries and commissions $$4,823$ per month, plus $5\%$ of sales

Delivery of pianos to customers $$58$ per piano sold

Utilities $$634$ per month

Depreciation of sales facilities $$5,085$ per month

Administrative:

Executive salaries $$13,552$ per month

Insurance $$696$ per month

Clerical $$2,483$ per month, plus $$35$ per piano sold

Depreciation of office equipment $$857$ per month

During August, Marwick$$s Pianos, Incorporated, sold and delivered $57$ 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.