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3 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6) Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:

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3 Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6) Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory rixed selling expense rixed adninistrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 300,000 s 20,000 200,000 7,000 its Print 12,000 15.000 60,000 s 18,000 Required: 1. Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit 5. Calculate the contribution margin per unit 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales? Chapter 1 In Class Exercise Saved 3 Req 1 Req 2 Req 3 to 5Req 6 Prepare a contribution format income statement. 3.34 points Todrick Company Contribution Format Income Sales Variable expenses: 300,000 Print Fixed expenses: Req 2 > 3 Req 1 RReq 3 to 5 Req 6 Prepare a traditional format income statement. 3.34 points Print Selling and administrative expenses: C Req 1 Req 3 to 5 uit Caicuate the varsace cost per 5. Calculate the contribution margin per unit 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales? Complete this question by entering your answers in the tabs below 334 points Req 1 Req 2 Req 3 to SReq 6 Print 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. S. Calculate the contribution margin per unit. 3. Selling price per unt 4. Variable cost per unit 5 Contribution margin per unit C Req 2 Req6 > 1. Prepare a contribution format Income statement 2. Prepare a traditional format income statement 3. Calculate the selling price per unit 4. Calculate the variable cost per unit 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales? 3.34 points Complete this question by entering your answers in the tabs below. Rea Req 2 Req 3 to 5 Req6 format) would be more useful to managers in estimating Which income statement format (traditional format or contribution how net operating income will change in responses to changes in unit sales? OTradtional income statement Contribution income statement Reg 3 to5

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