Marwick$$s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $$1,482$ per unit and then sells them to retail customers for an average price of $$2,900$ each. The company$$s selling and administrative costs for a typical month are presented below:

Costs Cost Formula

Selling:

Advertising $ $947$ per month

Sales salaries and commissions $ $4,809$ per month, plus $5\%$ of sales

Delivery of pianos to customers $ $59$ per piano sold

Utilities $ $636$ per month

Depreciation of sales facilities $ $4,983$ per month

Administrative:

Executive salaries $ $13,422$ per month

Insurance $ $702$ per month

Clerical $ $2,529$ per month, plus $$40$ per piano sold

Depreciation of office equipment $ $896$ per month

During August, Marwick$$s Pianos, Incorporated, sold and delivered $56$ 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.Required $1$

Required $2$

Prepare a traditional format income statement for August. $($A "Net operating

$\backslash$table$[[$Marwick$\text{'}$s Pianos, Incorporated$],[$Traditional Income Statement$],[$For the Month of August$],[$Sales$,,$$$,150,800],[$Cost of goods sold,,,$77,064],[$Gross margin,,,$73,736],[$Selling and administrative expenses:$],[$Selling expenses:$],[$Advertising$,947,,],[$Sales salaries and commissions,$12,349,,],[$Delivery of pianos,$3,304,,],[$Utilities$,636,,],[$Depreciation of sales facilities,$4,983,,],[,,,],[,,,],[$Total selling expenses,$22,219,,],[$Administrative expenses:$],[$Executive salaries,$13,422,,],[$Insurance$,702,,],[$Clerical$,4,769,,],[$Depreciation of office equipment,$896,,],[,,,],[7,,,],[$Total administrative expenses,$19,789,,],[$Total selling and administrative expenses,,,$42,008],[$Net operating income,,$$,31,728]]$