Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,506 per unit and then sells them to retail customers for an average price of $3,100 each. The companys selling and administrative costs for a typical month are presented below:

Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,506 per unit and then sells them to retail customers for an average price of $3,100 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $938 per month $4,786 per month, plus 3% of sales $60 per piano sold $641 per month $4,916 per month $13,504 per month $713 per month $2,533 per month, plus $44 per piano sold $902 per month During August, Marwick's Pianos, Inc., sold and delivered 56 pianos. Required: 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. Complete this question by entering your answers in the tabs below. Required 1 Required 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. (A "Net operating loss" should be entered as a negative number.)