Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,487 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: 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 Cost Formula $965 per month $4,803 per month, plus 6% of sales $63 per piano sold. $656 per month $4,977 per month $13,497 per month $705 per month $2,475 per month, plus $44 per piano sold. $884 per month During August, Marwick's 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. Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses: Selling expenses: Total selling expenses Administrative expenses: Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Variable expenses: Total variable expenses Contribution margin Fixed expenses: Total Per Piano