Milden Company is a merchandiser that plans to sell $12,000$ units during the next quarter at a selling price of $$100$ per unit. The company also gathered the following cost estimates for the next quarter:

Cost Cost Formula

Cost of goods sold $$35$ per unit sold

Advertising expense $$210,000$ per quarter

Sales commissions $6\%$ of sales

Shipping expense $$28,000$ per quarter $+$ $$9\mathrm{.}10$ per unit sold

Administrative salaries $$145,000$ per quarter

Insurance expense $$9,000$ per quarter

Depreciation expense $$76,000$ per quarter

Required:

Prepare a contribution format income statement for the next quarter.

Prepare a traditional format income statement for the next quarter.