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 $2,700 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$ 960	per month
Sales salaries and commissions	$ 4,792	per month, plus 5% of sales
Delivery of pianos to customers	$ 60	per piano sold
Utilities	$ 645	per month
Depreciation of sales facilities	$ 4,992	per month
Administrative:
Executive salaries	$ 13,539	per month
Insurance	$ 698	per month
Clerical	$ 2,451	per month, plus $39 per piano sold
Depreciation of office equipment	$ 917	per month

During August, Marwicks Pianos, Incorporated, sold and delivered 63 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.

Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's 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 $2.700 each. The company's selling and administrative costs for a typical month are presented below: During August. Marwick's Planos, Incorporated, sold and delivered 63 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. Complete this question by entering your answers in the tabs below. Prepare a traditional format income statement for August. ( A "Net operating loss" should be entered as a negative number.) 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. (A "Net-operating loss" should be entered as a negative number.)