Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,484 per unit and then sells them to retail customers for an average price of $2,300 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	$	4,804 per month, plus 5% of sales
Delivery of pianos to customers	$	59 per piano sold
Utilities	$	654 per month
Depreciation of sales facilities	$	4,935 per month
Administrative:
Executive salaries	$	13,428 per month
Insurance	$	719 per month
Clerical	$	2,466 per month, plus $40 per piano sold
Depreciation of office equipment	$	909 per month

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

1. Prepare a traditional format income statement for August. 2. 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.

Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: 0 Total selling expenses Administrative expenses: Total administrative expenses 0 Total selling and administrative expenses 0 Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses: Total variable expenses 0 0 Contribution margin Fixed expenses: Total fixed expenses 0