Problem $1-21($Algo$)$ Traditional and Contribution Format Income Statements $[$LO$1-6]$

Marwick's Pianos, Incorporated, purchases pianos from a manufacturer for an average cost of $$1,486$ per unit and then sells them to retail customers for an average price of $$2,500$ each. The company's selling and administrative costs for a typical month are presented below:

$\backslash$table$[[$Costs$,$Cost Formula$],[$Selling:$,$$$966$ per month$],[$Advertising$,$$$4,820$ per month, plus $3\%$ of sales$],[$Sales salaries and commissions,$$63$ per piano sold$],[$Delivery of pianos to customers,$$638$ per month$],[$Utilities$,$$$5,065$ per month$],[$Depreciation of sales facilities,$],[$Administrative:$,$$$13,542$ per month$],[$Executive salaries,$$707$ per month$],[$Insurance$,$$$2,474$ per month, plus $$41$ per piano sold$],[$Clerical$,$$$862$ per month$]]$

During August, Marwick's Pianos, Incorporated, sold and delivered $62$ pianos.

Required:

Prepare a traditional format income statement for August.

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.

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