Marwick$$s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $$2,450$ per unit and then sells them to retail customers for an average price of $$3,125$ each. The company$$s selling and administrative costs for a typical month are presented below:

Costs Cost Formula

Selling:

Advertising $ $700$ per month

Sales salaries and commissions $ $950$ per month, plus $8\%$ of sales

Delivery of pianos to customers $ $30$ per piano sold

Utilities $ $350$ per month

Depreciation of sales facilities $ $800$ per month

Administrative:

Executive salaries $ $2,500$ per month

Insurance $ $400$ per month

Clerical $ $1,000$ per month, plus $$20$ per piano sold

Depreciation of office equipment $ $300$ per month

During August, Marwick$$s Pianos, Incorporated, sold and delivered $40$ 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.