Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,509 per unit and then sells them to retail customers for an average price of $3,100 each. The companys selling and administrative costs for a typical month are presented below:

CostsCost FormulaSelling: Advertising$931 per monthSales salaries and commissions$4,802 per month, plus 5% of salesDelivery of pianos to customers$58 per piano soldUtilities$632 per monthDepreciation of sales facilities$5,027 per monthAdministrative: Executive salaries$13,451 per monthInsurance$681 per monthClerical$2,511 per month, plus $45 per piano soldDepreciation of office equipment$926 per month

During August, Marwicks Pianos, Incorporated, 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.

) \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Fontribution rormat income statement } \\ \hline & \multicolumn{1}{|c|}{ Total } & Per Piano \\ \hline Variable expenses: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total variable expenses of August & & \\ \hline Contribution margin & & \\ \hline Fixed expenses: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}