Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,490 per unit and then sells them to retail customers for an average price of $2,000 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$ 944	per month
Sales salaries and commissions	$ 4,778	per month, plus 5% of sales
Delivery of pianos to customers	$ 61	per piano sold
Utilities	$ 649	per month
Depreciation of sales facilities	$ 4,930	per month
Administrative:
Executive salaries	$ 13,528	per month
Insurance	$ 703	per month
Clerical	$ 2,540	per month, plus $35 per piano sold
Depreciation of office equipment	$ 852	per month

During August, Marwicks Pianos, Incorporated, sold and delivered 58 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.

Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,490 per unit and then sells them to retail customers for an average price of $2,000 each. The company's selling and administrative costs for a typical month are presented below: During August, Marwick's Pianos, Incorporated, sold and delivered 58 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 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.)