Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,496 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	$	959 per month
Sales salaries and commissions	$	4,803 per month, plus 5% of sales
Delivery of pianos to customers	$	62 per piano sold
Utilities	$	633 per month
Depreciation of sales facilities	$	4,946 per month
Administrative:
Executive salaries	$	13,510 per month
Insurance	$	704 per month
Clerical	$	2,486 per month, plus $36 per piano sold
Depreciation of office equipment	$	851 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.

Prepare a traditional format income statement for August. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Sales $ 158,600 Cost of goods sold Selling and administrative expenses: Selling expenses: 0 Total selling expenses Administrative expenses: Total administrative expenses 0 Total selling and administrative expenses 0 Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses: Total variable expenses 0 Contribution margin Fixed expenses: Total fixed expenses 0