Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,495 each from the manufacturer. Marwicks Pianos, Inc., sells the pianos to its customers at an average price of $3,200 each. The selling and administrative costs that the company incurs in a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$940 per month
Sales salaries and commissions	$4,778 per month, plus 4% of sales
Delivery of pianos to customers	$62 per piano sold
Utilities	$647 per month
Depreciation of sales facilities	$4,964 per month
Administrative:
Executive salaries	$13,544 per month
Insurance	$699 per month
Clerical	$2,460 per month, plus $43 per piano sold
Depreciation of office equipment	$884 per month

During August, Marwicks Pianos, Inc., sold and delivered 64 pianos.

Required:

1.

Prepare an income statement for Marwicks Pianos, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number.)

2.

Prepare an income statement for Marwicks Pianos, Inc., for August, this time using the contribution format, with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through contribution margin. (A "Net operating loss" should be entered as a negative number.)