Assignment 1 1. Contribution Format versus Traditional Income Statement Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $125 each from the manufacturer. Marwick's Pianos, Inc., sells the pianos to its customers at an average price of $250 each. The selling and administrative costs that the company incurs in a typical month are presented below: Com Sporo Advertising Sales salaries and 51,200 per metus 10% of sales Delivery of planes to $15 per piano sold $500 per month Depreciation of $750 per month 52.000 per month $250 Nm 5700 per month, plus 55 per piano sold Clerical Depreciation office 5000 During June, Marwick's Pianos, Inc., sold and delivered 100 pianos. Required: (1). Prepare an income statement for Marwick's Pianos, Inc., for June. Use the traditional format, with costs organized by function. (2). Redo (1) above, this time using the contribution format, with costs organized by behavior. Show costs and revenues on both a total and a per unit basis down through contribution margin. (3). Refer to the income statement you prepared in (2) above. Why might it be misleading to show the fixed costs on a per unit basis