10 pomts eBook Print References Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Marwick's Planos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,512 per unit and then sells them to retail customers for an average price of $3,200 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) $969 per month $4,626 per month, plus 4% of sales $61 per piano sold $665 per month $4,911 per month $13,456 per month $703 per month $2,457 per month, plus $44 per plane sold $858 per month During August, Marwick's Planos, Incorporated, sold and delivered 64 planos 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. Sales Variable expenses: For the Month of August Sales salaries and commissions Delivery of pianos Clerical Cost of goods sold Total variable expenses Contribution margin Fixed expenses. Advertising Sales salaries and commissions Utilities Depreciation of sales facilities Depreciation of office equipment Executive salaries Insurance Total Per Piano $ 204,800 $ 3,200 0 0 Cost of goods sold Total variable expenses Contribution margin Fixed expenses. Advertising Sales salaries and commissions Utilities Depreciation of sales facilities Depreciation of office equipment Executive salaries Insurance Clerical Total fixed expenses