Problem 1-16B Contribution Format versus Traditional Income Statement [LO1-6] House of Pianos, Inc., purchases pianos from a well-known manufacturer and sells them at the retail level. The pianos sell, on the average, for $3,300 each. The average cost of a piano from the manufacturer is $1,492. The costs that the company incurs in a typical month are presented below: Costs Selling: Advertising Delivery of pianos Sales salaries and commissions Cost Formula $955 per month $61 per piano sold $4,823 per month, plus 4% of sales $633 per month $4,944 per month Utilities Depreciation of sales facilities Administrative: $13,490 per month $943 per month $2,499 per month, plus $37 per piano sold $719 per month Executive salaries Depreciation of office equipment Clerical Insurance During November, the company sold and delivered 60 pianos. Required: 1. Prepare a traditional income statement for November. House of Pianos, Inc. Traditional Income Statement For the Month Ended November 30 Sales $ 0 Selling and administrative expenses: Selling expenses: Total selling expenses 0 Administrative expenses: Total administrative expenses Total selling and administrative expenses 2. Prepare a contribution format income statement for November. House of Pianos, Inc. Contribution Format Income Statement For the Month Ended November 30 Per piano Total Variable expenses Total variable expenses Fixed expenses: Total fixed expenses Advertising Clerical Cost of goods sold Delivery of pianos Depreciation of office equipment Depreciation of sales facilities Executive salaries Insurance Sales Sales salaries and commissions Executive salaries Insurance Sales Sales salaries and commissions Utilities