Marwicks Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $2,450 each from the manufacturer. Marwicks Pianos, Inc., sells the pianos to its customers at an average price of $3,125 each. The selling and administrative costs that the company incurs in a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$700 per month
Sales salaries and commissions	$950 per month, plus 8% of sales
Delivery of pianos to customers	$30 per piano sold
Utilities	$350 per month
Depreciation of sales facilities	$800 per month
Administrative:
Executive salaries	$2,500 per month
Insurance	$400 per month
Clerical	$1,000 per month, plus $20 per piano sold
Depreciation of office equipment	$300 per month

During August, Marwicks Pianos, Inc., sold and delivered 40 pianos.

Required:
1.	Prepare an income statement for Marwicks Pianos, Inc., for August. Use the traditional format, with costs organized by function.