Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,487 each from the manufacturer. Marwicks Pianos, Inc., sells the pianos to its customers at an average price of $3,100 each. The selling and administrative costs that the company incurs in a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$960 per month
Sales salaries and commissions	$4,771 per month, plus 5% of sales
Delivery of pianos to customers	$60 per piano sold
Utilities	$631 per month
Depreciation of sales facilities	$4,935 per month
Administrative:
Executive salaries	$13,588 per month
Insurance	$710 per month
Clerical	$2,485 per month, plus $36 per piano sold
Depreciation of office equipment	$945 per month

During August, Marwicks Pianos, Inc., sold and delivered 58 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.)