Page 58 PROBLEM 1-21 Traditional and Contribution Format Income Statements L01-6 Marwick's Pianos. Inc.. purchases pianos from a large manufacturer for an average cost of $2.450 per unit and then sells them to retail customers for an average price of $3.125 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling Advertising $700 per month Sales salaries and commissions $950 per month, plus 8% of sales Delivery of pianos to customers $30 per piano sold Utilities $350 per month Depreciation of sales facilities $800 per month Administrative Executive salaries $2,500 per month Insurance $400 per month Clerical $1,000 per month, plus $20 per plano sold Depreciation of office equipment $300 per month During August. Marwick's Pianos. Inc. sold and delivered 40 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. 3. Refer to the income statement you prepared in (2) above. Why might it be misleading to show the fixed costs on a per unit basis