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 $2,100 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$ 953	per month
Sales salaries and commissions	$ 4,803	per month, plus 4% of sales
Delivery of pianos to customers	$ 58	per piano sold
Utilities	$ 642	per month
Depreciation of sales facilities	$ 4,973	per month
Administrative:
Executive salaries	$ 13,470	per month
Insurance	$ 698	per month
Clerical	$ 2,531	per month, plus $45 per piano sold
Depreciation of office equipment	$ 908	per month

During August, Marwicks Pianos, Incorporated, sold and delivered 64 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.

Prepare a traditional format income statement for August. (A "Net operatin Marwick's Pianos, Incorporated Traditional Income Statement For the Month of August Marwick's Pianos, Incorporated Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses Selling and administrative expenses: Selling expenses Total variable expenses 0 0 Contribution margin Fixed expenses 0 Total selling expenses Administrative expenses Total administrative expenses 0 Total selling and administrative expenses Total fixed expenses 0