Marwicks Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $1,516 per unit and then sells them to retail customers for an average price of $3,400 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$968 per month
Sales salaries and commissions	$4,796 per month, plus 3% of sales
Delivery of pianos to customers	$61 per piano sold
Utilities	$645 per month
Depreciation of sales facilities	$5,032 per month
Administrative:
Executive salaries	$13,582 per month
Insurance	$703 per month
Clerical	$2,451 per month, plus $43 per piano sold
Depreciation of office equipment	$886 per month

During August, Marwicks Pianos, Incorporated, sold and delivered 63 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.