1. Prepare a traditional income statement for the quarter ended December 31Salea:Cost of goods soldGross marginTotal selling expenseTotal administrative expenseNet operating income 2. Prepare a contribution format income statement for the quarter ended December 31.Total variable expenseContribution marginTotal fixed expense

The Cosmos Company assembled the following information for the quarter ended December 31: Sales $150,000 Selling price per unit $750 Variable selling expense per unit $50 Variable administrative expense per unit $10 Total fixed selling expense $20,000 Total fixed administrative expense $20,000 Beginning merchandise inventory $30,000 Ending merchandise inventory $40,000 Merchandise purchases $100,000