please explain your answer

Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,492 per unit and then sells them to retail customers for an average price of $3,100 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance clerical Depreciation of office equipment $936 per month $4,798 per month, plus 4% of sales $62 per piano sold $643 per month $4,988 per month $13,590 per month $683 per month $2,546 per month, plus $37 per piano sold $867 per month During August, Marwick's Pianos, Inc., sold and delivered 61 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. Traditional Income Statement For the Month of August Sales $ 189.100 Cost of goods sold Gross margin Selling and administrative expenses: 91.012 107,088 Selling expenses: Advertising $ Sales salaries and commissions Delivery of planos Utilities Depreciation of sales facilities 936 7,756 3,782 643 4,988 Total selling expenses 18,105 Administrative expenses: Executive salaries 13,590 683 Insurance Clerical Depreciation of office equipment 4,803 19.943 Total administrative expenses Total selling and administrative expenses Net operating loss 38,048 72,760 $ Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Sales $ 189,100 Variable expenses: Per Piano $ 3,100 Sales salaries and commissions Delivery of pianos Clerical Cost of goods sold 91,012 1,492 91,012 1,492 Total variable expenses Contribution margin Fixed expenses: Advertising Sales salaries and commissions Utilities Depreciation of office equipment Depreciation of sales facilities Executive salaries Insurance Clerical Total fixed expenses Net operating income