Marwick’s pianos, inc., purchases pianos from a large manufacturer for an average cost of $1,503 per unit and then sells them to retail customers for an average price of $3,400 each. the company’s selling and administrative costs for a typical month are presented below: costs cost formula selling: advertising $ 952 per month sales salaries and commissions $ 4,816 per month, plus 3% of sales delivery of pianos to customers $ 63 per piano sold utilities $ 665 per month depreciation of sales facilities $ 5,003 per month administrative: executive salaries $ 13,501 per month insurance $ 719 per month clerical $ 2,535 per month, plus $35 per piano sold depreciation of office equipment $ 904 per month during august, marwick’s pianos, inc., sold and delivered 60 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.

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Answereconomy of purchase;

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