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Hey would love some help on this ! I filled out most of the table but not sure what to do with the open boxes.
Hey would love some help on this ! I filled out most of the table but not sure what to do with the open boxes. Thanks !
Problem 1-19 (Algo) 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 $ 390,000 $ 26,000 $ 260,000 Purchases $ 13,000 P $ 15,600 $ 19,500 Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 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. $ 78,000 $ 23,400 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 response to changes in unit sales? Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost of goods sold Selling expense Administrative expense Fixed expenses: Selling expense Administrative expense Net operating income $ $ 273,000 19,500 19,500 39,000 15,600 $ $ 390,000 312,000 54,600 23,400 Todrick Company Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Net operating income $ 58,500 35,100 S $ 390,000 273,000 117,000 93,600 23,400 Step by Step Solution
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