Marwicks Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,514 per unit and then sells them to retail customers for an average price of $3,200 each. The companys selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $960 per month Sales salaries and commissions $4,829 per month, plus 5% of sales Delivery of pianos to customers $57 per piano sold Utilities $658 per month Depreciation of sales facilities $4,962 per month Administrative: Executive salaries $13,511 per month Insurance $712 per month Clerical $2,453 per month, plus $38 per piano sold Depreciation of office equipment $885 per month During August, Marwicks Pianos, Incorporated, sold and delivered 55 pianos. Required: Prepare a traditional format income statement for August. 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. jer