Milden Company is a merchandiser that plans to sell 27,000 units during the next quarter at a selling price of $56 per unit. The company also gathered the following cost estimates for the next quarter:

Cost	Cost Formula
Cost of good sold	$26 per unit sold
Advertising expense	$176,000 per quarter
Sales commissions	5% of sales
Shipping expense	$34,000 per quarter + $6.00 per unit sold
Administrative salaries	$86,000 per quarter
Insurance expense	$9,600 per quarter
Depreciation expense	$56,000 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.