Milden Company is a merchandiser that plans to sell 29,000 units during the next quarter at a selling price of $54 per unit. The company also gathered the following cost estimates for the next quarter:

Cost	Cost Formula
Cost of good sold	$24 per unit sold
Advertising expense	$174,000 per quarter
Sales commissions	5% of sales
Shipping expense	$84,000 per quarter + $4.00 per unit sold
Administrative salaries	$84,000 per quarter
Insurance expense	$9,400 per quarter
Depreciation expense	$54,000 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.

Milden Company Contribution Format Income Statement For the Next Quarter Variable expenses: Total variable expenses Contribution margin Fixed expenses: Milden Company Traditional Format Income Statement For the Next Quarter Selling and administrative expenses: Total selling and administrative expenses