Problem 1-21 (Algo) Traditional and Contribution Format Income Statements (L01-6) Marwick's Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,480 per unit and then sells them to retail customers for an average price of $2,100 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula 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 $945 per month $4,825 per month, plus 5% of sales $59 per piano sold $630 per month $5,048 per month $13, 420 per month $718 per month $2,455 per month, plus $38 per piano sold $923 per month During August, Marwick's Pianos, Inc., sold and delivered 60 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. Complete this question by entering your answers in the tabs below. Required 1 Required 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. (A "Net operating loss" should be entered as a negative number.) Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Sales $ 126,000 $ 2,100 Variable expenses: Cost of goods sold 88,800 Sales salaries and commissions Delivery of pianos Clerical Total variable expenses 88,800 0 Contribution margin Fixed expenses: Total variable expenses 88,800 0 Contribution margin Fixed expenses: Total fixed expenses 0 Required 1 Required 2