D. Kline Mig. packs and distributes fruit juices. The beverage is sold for P5 per 250 ml tetra pack to dealers who charged its customers P7. For the year 2015, management estimates the following revenues and costs. Net sales P2,000,000 Selling expenses-variable P100,000 Direct materials 360,000 Selling expenses-fixed 150,000 Direct labor 590,000 Administrative expenses-variable 40,000 Mig. overhead-variable 270,000 Administrative expenses-fixed 78,000 Mfg. overhead-fixed 220,000 Required: 1. Prepare a traditional income statement for January 2021. 2. Prepare a contribution margin income statement for January 2021. 3. Reconcile the gross profit to the contribution margin and vice versa.E. FUP Guitars purchases guitars from well-known manufacturer in Cebu and sells them at the retail level. The guitars sell, on the average, for P1,500 each. The average cost of a guitar from the manufacturer is P650. The costs that the company incurs in a typical month are shown below: Cost Cost Formula Selling: Advertising P1,250 per month Delivery of guitar P60 per guitar sold Sales salaries and commissions P3,500 per month, 5% commissions Utilities P450 per month Depreciation of sales facilities P4,000 per month Administrative: Executive salaries P15,000 per month Depreciation of office equipment P900 per month Clerical P2,500 per month, P20 per guitar sold Insurance P700 per month During January, the company sold 75 guitars. Required: 1. Prepare a traditional income statement for January 2021. 2. Prepare a contribution margin income statement for January 2021. 3. Reconcile the gross profit to the contribution margin and vice versa