Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,507 per unit and then sells them to retail customers for an average price of $3,100 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 $4,826 per month, plus 4% of sales Delivery of pianos to customers $58 per piano sold Utilities $638 per month Depreciation of sales facilities $4,904 per month Administrative: Executive salaries $13,552 per month Insurance $696 per month Clerical $2,470 per month, plus $43 per piano sold Depreciation of office equipment $948 per month During August, Marwicks Pianos, Incorporated, sold and delivered 64 pianos.

Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,507 per unit and then sells them to retail customers for an average price of $3,100 each. The company's selling and administrative costs for a typical month are presented below: During August, Marwick's 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. 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.)