Marwick's 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 $2,500 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula 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 $968 per month $4,828 per month, plus 6% of sales $62 per piano sold $639 per month $5,087 per month $13,568 per month $699 per month $2,497 per month, plus $44 per piano sold $943 per month During August, Marwick's 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. Complete this question by entering your answers in the tabs below. 23,394 Total selling expenses Administrative expenses: Executive salaries 13,568 Insurance 699 Clerical 4,961 Depreciation of office equipment 943 Total administrative expenses 20,171 Total selling and administrative expenses Net operating income 43,565 12,267 $ Required 1 Required 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. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Sales $ 140,000 $ 2,500 Variable expenses: Cost of goods sold 84,168 1,503 Sales salaries and commissions 8,400 150 Delivery of pianos 3,472 62 Clerical 2,464 44 Total variable expenses 98,504 1,759 Contribution margin $ 41,496 $ 741 Fixed expenses: Fixed expenses: Advertising 968 Sales salaries and commissions 4,828 Utilities 639 Executive salaries 13,568 943 Depreciation of office equipment Depreciation of sales facilities 5,087 Insurance 699 Clerical 2,497 Total fixed expenses 29,229 12,267 Net operating income $