PROBLEM 2-19 Contribution Format versus Traditional Income Statement [LO 2-6] Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $2,450 each from the manufacturer. Marwick's Pianos, Inc., sells the pianos to its customers at an average price of $3,125 each. The selling and administrative costs that the company incurs in a typical month are presented below: Costs Cost Formula 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 ..... $700 per month $950 per month, plus 8% of sales $30 per piano sold $350 per month $800 per month $2,500 per month $400 per month $1,000 per month, plus $20 per piano sold $300 per month During August, Marwick's Pianos, Inc., sold and delivered 40 pianos. Required: 1. Prepare an income statement for Marwick's Pianos, Inc., for August. Use the traditional for- mat, with costs organized by function. 2. Redo requirement 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 contribu- tion margin. 3. Refer to the income statement you prepared in requirement 2 above. Why might it be mislead- ing to show the fixed costs on a per unit basis