Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $1,493 each from the manufacturer. Marwick's Pianos, Inc., sells the pianos to its customers at an average price of $2,500 each. The selling and administrative costs that the company incurs in a typical month are presented below: Costs Cost Formula Selling Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities $945 per month $4,819 per month, plus 6% of sales $82 per piano sold $661 per month $4,962 per month Administrative $13,510 per month $687 per month $2,503 per month, plus $43 per piano sold $905 per month Executive salaries nsurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Inc., sold and delivered 56 pianos. During August, Marwick's Pianos, Inc. sold and delivered 56 pianos. Required: 1. Prepare an income statement for Manwick's Pianos, Inc., for August. Use the traditional format, with costs organized by function. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc. Traditional Income Statement For the Month of ales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Sales salaries and commissions Delivery af piancs Advertsing Tolal selling expnscs Administrative e Total selling and administrative expenses 2. Prepare an income statament for Marwick's Planos, Inc., for August, this time uaing the contribution format, with costa organized by behavlor. Show costa and revenues on both a total and a per unit basis down through contribution margin. (A "Net operating loss" should be entered as a negatlve number.) Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Per Plano Total Variable expenses: Total vaiable expenses Cantrbufian rgin Fixed exinss: Tatal fixenxprnses