Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,513 per unit and then sells them to retail customers for an average price of $2,200 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 Administrative: Executive salaries Insurance Clerical Depreciation of office equipment Cost Formula $960 per month $4,810 per month, plus 48 of sales $62 per piano sold $633 per month $4,992 per month $13,526 per month $709 per month $2,521 per month, plus $45 per piano sold $872 per month During August, Marwick's Planos, Inc., sold and delivered 56 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