Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,480 per unit and then sells them to retail customers for an average price of $2,100 each. The companys selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 955 per month Sales salaries and commissions $ 4,778 per month, plus 6% of sales Delivery of pianos to customers $ 58 per piano sold Utilities $ 634 per month Depreciation of sales facilities $ 4,945 per month Administrative: Executive salaries $ 13,475 per month Insurance $ 687 per month Clerical $ 2,502 per month, plus $35 per piano sold Depreciation of office equipment $ 883 per month During August, Marwicks Pianos, Inc., sold and delivered 58 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.