Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,516 per unit and then sells them to retail customers for an average price of $2,100 each. The company's selling and administrative costs for a typical month are presented below: Conta Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilition Depreciation of sales facilities. Administratives Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $940 per month $4,823 per month, plus 5% of sales $58 per piano sold 5664 per month $5,057 per month $13,578 per month $705 per month $2,525 per month, plus $45 per piano sold $942 per month During August, Marwick's Pianos, Incorporated, sold and delivered 60 planos. 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. Sales Marwick's Pianos, Incorporated Contribution Format Income Statement For the Month of August Variable expenses: Clerical Sales salaries and commissions Delivery of pianos Cost of goods sold Total variable expenses Contribution margin Fixed expenses: Advertising Depreciation of sales facilities Utilities Executive salaries Insurance Depreciation of office equipment Clerical Sales salaries and commissions Total Per Piano $ 126,000 45 0 45 Total fixed expenses Net operating loss 0