1.

		Amount
Number of units sold		13,000
Selling price per unit	$	15
Variable selling expense per unit	$	2
Variable administrative expense per unit	$	2
Total fixed selling expense	$	18,000
Total fixed administrative expense	$	14,000
Beginning merchandise inventory	$	9,000
Ending merchandise inventory	$	26,000
Merchandise purchases	$	86,000

Required:

a.. Prepare a traditional income statement.

b. Prepare a contribution format income statement.

2.Company manufactures and sells a single product. A partially completed schedule of the companys total costs and costs per unit over the relevant range of 53,000 to 93,000 units is given below:

Required:

a. Complete the schedule of the companys total costs and costs per unit as given in the relevant tab below.

b. Assume that the company produces and sells 83,000 units during the year at a selling price of $9.76 per unit. Prepare a contribution format income statement for the year.