Problem 1-21 (Algo) Traditional and Contribution Format Income Statements [LO1-6) Marwick's Planos, Incorporated, purchases planos from a large manufacturer for an average cost of $1,511 per unit and then sells them to retail customers for an average price of $2,500 each. The company's seling and administrative costs for a typical month are presented below: Conta Cost Tormula Selling: Advertising $963 per month Sales salaries and commissions $4,821 per month, plus 65 of sales Delivery of pianos to customers $63 per piano sold Utilities $635 per month Depreciation of sales facilities $5,025 per month Administratives Executive salarion $13,590 per month Insurance $697 per month Clerical $2,528 per month, plus $37 per piano sold Depreciation of office equipoent $910 per month During August, Marwick's Planos, Incorporated, sold and delivered 63 planos. 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 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, Incorporated Contribution Format Income Statement For the Month of August Total Per Plano Sales $ 157,500 $ 2,500 Variable expenses Cost of goods sold 95,193 1,511 Sales salaries and commissions Delivery of planos 63 Clerical 37 150 3,969 Total variable expenses Cantin mamin 99,162 1,761 Total Per Piano $ 157,500 $ 2,500 Sales Variable expenses: Cost of goods sold Sales salaries and commissions Delivery of pianos Clerical 95,193 1,511 150 3,969 63 37 99,162 1,761 Total variable expenses Contribution margin Fixed expenses: Advertising Sales salaries and commissions Utilities Depreciation of sales facilities Executive salaries 963 635 Insurance Clerical Depreciation of office equipment Total fixed expenses 1,598