Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,486 per unit and then sells them to retail customers for an average price of $3,200 each. The company's selling and administrative costs for a typical month are presented below Costs Cost Formula Selling: Advertising $944 per month Sales salaries and commissions $4,802 per month, plus 5% of sales Delivery of pianos to customers $57 per piano sold Utilities $653 per month Depreciation of sales facilities $5,001 per month Administrative: Executive salaries $13,59% per month Insurance $704 per month clerical $2,525 per month, plus $45 per piano sold Depreciation of office equipment $873 per month During August, Marwick's Planos, Incorporated, sold and delivered 62 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 Marwick's Pianos, Incorporated Traditional Income Statement For the Month of August Sales $ 179,000 > 83,048 96,152 X Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses: Advertising Sales salaries and commissions Delivery of pianos Utilities Depreciation of sales facilities $ 966 X 11,945 X 3,416 X 662 X 5,041 22,030 Total selling expenses Administrative expenses: Executive salaries Insurance Clerical Depreciation of office equipment OO 13.491 717 4,480 X 902 x 19,590 Total administrative expenses Total selling and administrative expenses Net operating income 41,620 $ 54,532 Marwick's Pianos, Incorporated Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses: 0 0 Total variable expenses Contribution margin Fixed expenses: Total fixed expenses 0