Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,504 per unit and then sells them to retail customers for an average price of $3,400 each. The companys selling and administrative costs for a typical month are presented below:

CostsCost FormulaSelling:Advertising$963 per monthSales salaries and commissions$4,807 per month, plus 6% of salesDelivery of pianos to customers$59 per piano soldUtilities$649 per monthDepreciation of sales facilities$5,087 per monthAdministrative:Executive salaries$13,490 per monthInsurance$683 per monthClerical$2,522 per month, plus $38 per piano soldDepreciation of office equipment$949 per month

During August, Marwicks Pianos, Incorporated, 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.