Marwick's Pianos, Incorporated, purchases planos from a large manufacturer for an average cost of $2,450 per unit and then sells Whem to retail customers for an average price of $3,125 each. The company's selling and administrative costs for a typical month are presented below: Costo Cont Formula Selling: Advertising $700 per month Sales salaries and commissions $950 per month, plus 8 of sales Delivery of planos to customers $30 per piano sold Utilities $350 per month Depreciation of bales facilitien $800 per month Administratives Executive salaries $2,500 per month Insurance $400 per month Clerical $1.000 per month, plus $ 20 per piano sold Depreciation of office equipment $300 per month During August, Marwick's Planos, Incorporated, sold and delivered 40 planos 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 Traditional Income Statement For the Month of August Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses: Advertising Sales salaries and commissions Delivery of pianos Utilities Depreciation of sales facilities 0 Total selling expenses Administrative expenses: Executive salaries Insurance Clerical Depreciation of office equipment 0 Total administrative expenses Total selling and administrative expenses Net operating income 0 Required Required 2 Prey 1 of 1 Per Piano Marwick's Pianos, Incorporated Contribution Format Income Statement For the Month of August Total Sales Variable expenses: Sales salaries and commissions Delivery of pianos Clerical Cost of goods sold 0 ces Total variable expenses Contribution margin Fixed expenses: Advertising Sales salaries and commissions Utilities Depreciation of sales facilities Depreciation of office equipment Executive salaries Insurance Clerical Total fixed expenses 0 Prey