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Milden Company is a merchandiser that plans to sell 23,000 units during the next quarter at a selling price of $51 per unit. The company

Milden Company is a merchandiser that plans to sell 23,000 units during the next quarter at a selling price of $51 per unit. The company also gathered the following cost estimates for the next quarter:

Cost Cost Formula
Cost of good sold $21 per unit sold
Advertising expense $171,000 per quarter
Sales commissions 6% of sales
Shipping expense $42,000 per quarter + $7.00 per unit sold
Administrative salaries $81,000 per quarter
Insurance expense $9,100 per quarter
Depreciation expense $51,000 per quarter

Required:

1. Prepare a contribution format income statement for the next quarter

Milden Company
Contribution Format Income Statement
For the Next Quarter
Variable expenses:
Total variable expenses
Contribution margin
Fixed expenses:
Total fixed expenses

2. Prepare a traditional format income statement for the next quarter

Milden Company
Traditional Format Income Statement
For the Next Quarter
Selling and administrative expenses:
Total selling and administrative expenses

.

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