Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,482 per unit and then sells them to retail customers for an average price of $2,400 each. The company's selling and administrative costs for a typical month are presented below: Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administratives Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $967 per month $ 4,818 per month, plus 5% of sales $ 59 per piano sold $665 per month $ 4,968 per month $ 13,562 per month $ 701 per month $2,482 per month, plus $38 per piano sold $ 905 per month During August, Marwick's Pianos, Incorporated, sold and delivered 64 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.