Milden Company is a merchandiser that plans to sell 25,000 units during the next quarter at a selling price of $52 per unit. The company also gathered the following cost estimates for the next quarter:

Cost	Cost Formula
Cost of good sold	$22 per unit sold
Advertising expense	$172,000 per quarter
Sales commissions	5% of sales
Shipping expense	$54,000 per quarter + $6.00 per unit sold
Administrative salaries	$82,000 per quarter
Insurance expense	$9,200 per quarter
Depreciation expense	$52,000 per quarter

Required:

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

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

Prepare a contribution format income statement for the next quarter.

Milden Company
Contribution Format Income Statement
For the Next Quarter
Sales
Variable expenses:
Cost of goods sold
Sales commission
Shipping expense
Advertising expense
Shipping expense
Total variable expenses		0
Contribution margin
Fixed expenses:
Advertising expense
Shipping expense
Administrative salaries
Insurance expense
Depreciation expense
Total fixed expenses		0
Net operating income

Milden Company
Traditional Format Income Statement
For the Next Quarter
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Advertising expense
Sales commission
Shipping expense
Advertising expense
Administrative salaries
Insurance expense
Depreciation expense
Shipping expense
Total selling and administrative expenses		0
Net operating income