Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,483 per unit and then sells them to retail customers for an average price of $2,800 each. The companys selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 969 per month Sales salaries and commissions $ 4,804 per month, plus 6% of sales Delivery of pianos to customers $ 61 per piano sold Utilities $ 653 per month Depreciation of sales facilities $ 5,045 per month Administrative: Executive salaries $ 13,478 per month Insurance $ 703 per month Clerical $ 2,488 per month, plus $37 per piano sold Depreciation of office equipment $ 944 per month During August, Marwicks Pianos, Inc., sold and delivered 55 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.