ACCOU PROBLEM 2-14 Contribution Format versus Traditional Income Statement (LO 2-5] House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail evel. The organs sell, on the average, for $2,500 each. The average cost of an organ from the manu- Facturer is $1,500. The costs that the company incurs in a typical month are presented below: Costs Cost Formula Selling: Advertising Delivery of organs. Sales salaries and commissions ng $950 per month $60 per organ sold $4,800 per month, plus 4% of sales $650 per month $5,000 per month Utilities. .. Depreciation of sales facilities Administrative: Executive salaries. .... Depreciation of office equipment Clerical.. $13,500 per month $900 per month $2,500 per month, plus $40 per organ sold $700 per month Insurance During November, the company sold and delivered 60 organs. Required: 1Prepare a traditional income statement for November. 2 Prepare a contribution format income statement for November. Show costs and revenues on both a total and a per unit basis down through contribution margin. 3Refer to the income statement you prepared in (2) above. Why might it be misleading to show the fixed costs on a per unit basis