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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

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.

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