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Milden Company is a merchandiser that plans to sell 33,000 units during the next quarter at a selling price of $55 per unit. The company
Milden Company is a merchandiser that plans to sell 33,000 units during the next quarter at a selling price of $55 per unit. The company also gathered the following cost estimates for the next quarter:
Cost | Cost Formula | ||
Cost of good sold | $25 per unit sold | ||
Advertising expense | $182,000 per quarter | ||
Sales commissions | 5% of sales | ||
Shipping expense | $32,000 per quarter + $5.00 per unit sold | ||
Administrative salaries | $92,000 per quarter | ||
Insurance expense | $10,200 per quarter | ||
Depreciation expense | $62,000 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 Variable expenses: Total variable expenses Contribution margin Fixed expenses Total fixed expenses Prepare a traditional format income statement for the next quarter. Milden Company Traditional Format Income Statement For the Next Quarter Slling and administrative expenses Total selling and administrative expenses
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