Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,498 per unit and then sells them to retail customers for an average price of $2,800 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$940 per month
Sales salaries and commissions	$4,806 per month, plus 5% of sales
Delivery of pianos to customers	$61 per piano sold
Utilities	$661 per month
Depreciation of sales facilities	$4,965 per month
Administrative:
Executive salaries	$13,498 per month
Insurance	$692 per month
Clerical	$2,464 per month, plus $41 per piano sold
Depreciation of office equipment	$864 per month

During August, Marwicks Pianos, Incorporated, sold and delivered 62 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.