Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,510 per unit and then sells them to retail customers for an average price of $2,600 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$	937 per month
Sales salaries and commissions	$	4,819 per month, plus 5% of sales
Delivery of pianos to customers	$	62 per piano sold
Utilities	$	669 per month
Depreciation of sales facilities	$	5,040 per month
Administrative:
Executive salaries	$	13,523 per month
Insurance	$	691 per month
Clerical	$	2,491 per month, plus $37 per piano sold
Depreciation of office equipment	$	898 per month

During August, Marwicks Pianos, Inc., sold and delivered 62 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.