Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,497 per unit and then sells them to retail customers for an average price of $2.700 each. The company's selling and administrative costs for a typical month are presented below Cost Formula sts Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: $947 per month $4,816 per month, plus 5% of sales $63 per piano sold $658 per month $4,954 per month $13,597 per month $697 per month $2,503 per month, plus 540 per piano sold $858 per month Executive salaries Insurance Clerical Depreciation of office equipment During August, Marwick's Pianos, Inc, sold and delivered 63 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 Sales Cost of goods sold Gross margin Selling and administrative expenses Selling expenses Advertising Sales salaries and commissions Delivery of pianos Utilities Depreciation of sales facilities Total selling expenses Administrative expenses Executive salaries Insurance Clerical Depreciation of office equipment Total administrative expenses Total selling and administrative expenses et operating income Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Sales Variable expenses Cost of goods sold Sales salaries and commissions Delivery of pianos Clerical Total variable expenses Contribution margin Fixed expenses Advertising Sales salaries and commissions Utilities Depreciation of sales facilities Executive salaries Insurance Clerical Depreciation of office equipment Total fixed expenses Net operating income