Marwicks 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 $2,500 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$942 per month
Sales salaries and commissions	$4,801 per month, plus 3% of sales
Delivery of pianos to customers	$62 per piano sold
Utilities	$655 per month
Depreciation of sales facilities	$4,911 per month
Administrative:
Executive salaries	$13,458 per month
Insurance	$715 per month
Clerical	$2,474 per month, plus $38 per piano sold
Depreciation of office equipment	$889 per month

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 $2,500 each. The company's selling and administrative costs for a typical month are presented below: During August, Marwick's Pianos, Incorporated, sold and delivered 60 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 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.)