Contribution Margin Income Statement.Last month Kumar Production Company sold its product for $60 per unit. Fixed production costs were $40,000, and variable production costs amounted to $15 per unit. Fixed selling and administrative costs totaled $26,000, and variable selling and administrative costs amounted to $5 per unit. Kumar Production produced and sold 7,000 units last month. Required:

1.traditional income statement for Kumar Production Company.

2.contribution margin income statement for Kumar Production Company.

3.Why do companies use the contribution margin income statement format?