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Problem 1-21 Traditional and Contribution Format Income Statements (L01-6] Marwick's Pianos, Inc., purchases planos from a large manufacturer for an average cost of $1,481 per unit and then sells them to retail customers for an average price of $2,700 each. The company's selling and administrative costs for a typical month are presented below: Cost Formula Costs Selling: Advertising Sales salaries and commissions Delivery of pianos to customers Utilities Depreciation of sales facilities Administrative: Executive salaries Insurance Clerical Depreciation of office equipment $959 per month $4,788 per month, plus 6% of sales $59 per piano sold $655 per month $5,021 per month $13,482 per month $714 per month $2,469 per month, plus $36 per piano sold $915 per month During August, Marwick's Pianos, Inc, sold and delivered 59 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. 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