Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,486 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	$	934 per month
Sales salaries and commissions	$	4,774 per month, plus 4% of sales
Delivery of pianos to customers	$	61 per piano sold
Utilities	$	653 per month
Depreciation of sales facilities	$	4,963 per month
Administrative:
Executive salaries	$	13,504 per month
Insurance	$	683 per month
Clerical	$	2,516 per month, plus $38 per piano sold
Depreciation of office equipment	$	947 per month

During August, Marwicks Pianos, Inc., sold and delivered 57 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		$153,900
Cost of goods sold
Selling and administrative expenses:
Selling expenses:
Advertising	$934
Sales salaries and commissions
Utilities	653
Depreciation of sales facilities	4,963
Delivery of pianos
Total selling expenses	6,550
Administrative expenses:
Insurance	683
Executive salaries	13,504
Depreciation of office equipment	947
Clerical
Total administrative expenses	15,134
Total selling and administrative expenses		21,684
Net operating income