Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,481 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	$ 935	per month
Sales salaries and commissions	$ 4,805	per month, plus 5% of sales
Delivery of pianos to customers	$ 62	per piano sold
Utilities	$ 662	per month
Depreciation of sales facilities	$ 4,977	per month
Administrative:
Executive salaries	$ 13,524	per month
Insurance	$ 709	per month
Clerical	$ 2,524	per month, plus $37 per piano sold
Depreciation of office equipment	$ 903	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.