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 $1,520 per unit and then sells them to retail customers for an average price of $3,100 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Coats Selling: Advertising Sales salaries and commissions Delivery of planos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $934 per month $4,816 per month, plus 6% of sales $58 per piano sold $657 per month $4,968 per month $13,560 per month $701 per month $2,515 per month, plus $44 per piano sold $875 per month During August, Marwick's Pianos, Inc., sold and delivered 64 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. POLO Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses: Total variable expenses Contribution margin Fixed expenses: Total variable expenses Contribution margin Fixed expenses: Total fixed expenses 0