Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,505 per unit and then sells them to retail customers for an average price of $2,900 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	$	4,821 per month, plus 5% of sales
Delivery of pianos to customers	$	60 per piano sold
Utilities	$	637 per month
Depreciation of sales facilities	$	5,002 per month
Administrative:
Executive salaries	$	13,561 per month
Insurance	$	701 per month
Clerical	$	2,495 per month, plus $43 per piano sold
Depreciation of office equipment	$	921 per month

During August, Marwicks Pianos, Inc., sold and delivered 61 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: 0 Total selling expenses Administrative expenses: 0 Total administrative expenses Total selling and administrative expenses Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses: 0 Total variable expenses Contribution margin Fixed expenses: Total fixed expenses 0