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Marwick s Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $ 1 , 5 1 1 per unit and then sells

Marwicks Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,511 per unit and then sells them to retail customers for an average price of $2,500 each. The companys selling and administrative costs for a typical month are presented below:
Costs Cost Formula
Selling:
Advertising $963 per month
Sales salaries and commissions $4,787 per month, plus 4% of sales
Delivery of pianos to customers $58 per piano sold
Utilities $659 per month
Depreciation of sales facilities $5,091 per month
Administrative:
Executive salaries $13,530 per month
Insurance $702 per month
Clerical $2,537 per month, plus $41 per piano sold
Depreciation of office equipment $932 per month
During August, Marwicks Pianos, Incorporated, sold and delivered 56 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.
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