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I'm not sure where to begin. What steps do I take to find the variable administrative expense and fixed selling expense? Todrick Company is a
I'm not sure where to begin. What steps do I take to find the variable administrative expense and fixed selling expense?
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 405,000 Sales Beginning merchandise inventory Purchases 27,000 270,000 13,500 Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 16,200 20,250 81,000 24,300 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? Complete this question by entering your answers in the tabs below. Reg 3 to 5 Req 2 Req 1 Reg 6 Prepare a contribution format income statement. Todrick Company Contribution Format Income Statement Sales Variable expenses: 405,000 Selling expense $4 20,250 Administrative expense Cost of goods sold 283,500 303,750 Contribution margin Fixed expenses: Selling expense Administrative expense 16,200 16,200 Ending merchandise inventory Net operating income %24 Complete this question by entering your answers in the tabs below. Req 2 Req 6 Reg 3 to 5 Reg 1 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 3. Selling price per unit 4. Variable cost per unit 5. Contribution margin per unit Complete this question by entering your answers in the tabs below. Req 3 to 5 Req 6 Req 1 Reg 2 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? OTraditional income statement OContribution income statementStep by Step Solution
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