Marwick$$s Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $$1,487$ per unit and then sells them to retail customers for an average price of $$3,100$ each. The company$$s selling and administrative costs for a typical month are presented below:

Costs Cost Formula

Selling:

Advertising $$942$ per month

Sales salaries and commissions $$4,778$ per month, plus $4\%$ of sales

Delivery of pianos to customers $$60$ per piano sold

Utilities $$643$ per month

Depreciation of sales facilities $$4,955$ per month

Administrative:

Executive salaries $$13,518$ per month

Insurance $$691$ per month

Clerical $$2,516$ per month, plus $$42$ per piano sold

Depreciation of office equipment $$908$ per month

During August, Marwick$$s Pianos, Incorporated, sold and delivered $55$ 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.