Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,503 per unit and then sells them to retail customers for an average price of $2,700 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$	960 per month
Sales salaries and commissions	$	4,782 per month, plus 3% of sales
Delivery of pianos to customers	$	60 per piano sold
Utilities	$	640 per month
Depreciation of sales facilities	$	5,069 per month
Administrative:
Executive salaries	$	13,532 per month
Insurance	$	715 per month
Clerical	$	2,505 per month, plus $40 per piano sold
Depreciation of office equipment	$	945 per month

During August, Marwicks 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.

Prepare a traditional format income statement for August. (A "Net operating loss" should be entered as a negative number.)