Problem 1-21 Traditional and Contribution Format Income Statements (LO1-6] Marwick's Planos, Inc., purchases planos from a large manufacturer for an average cost of $1.506 per unit and then sells them to retail customers for an average price of $2,200 each. The company's selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $934 per month Sales salaries and commissions $4,814 per month, plus 4% of sales Delivery of pianos to customers $60 per piano sold Utilities $642 per month Depreciation of sales $4,910 per month facilities Administrative: Executive salaries $13,504 per month Insurance $695 per month $2,527 per month, plus $39 per piano clerical sold Depreciation of office $872 per month equipment During August, Marwick's Planos, Inc., sold and delivered 64 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. 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.) Show less Marwick's Pianos, Inc. Contribution Format Income Statement For the Month of August Total Piano Per Variable expenses Total variable expenses Contribution margin Fixed expenses: Total fixed expenses Prepare a traditional format income statement for August. (A "Net operating loss should be entered as a negative number.) Marwick's Pianos, Inc. Traditional Income Statement For the Month of August Selling and administrative expenses Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total selling and administrative expenses