Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,495 per unit and then sells them to retail customers for an average price of $2,400 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$955 per month
Sales salaries and commissions	$4,800 per month, plus 6% of sales
Delivery of pianos to customers	$62 per piano sold
Utilities	$651 per month
Depreciation of sales facilities	$5,057 per month
Administrative:
Executive salaries	$13,443 per month
Insurance	$710 per month
Clerical	$2,455 per month, plus $41 per piano sold
Depreciation of office equipment	$923 per month

During August, Marwicks Pianos, Incorporated, sold and delivered 56 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.