Milden Company is a merchandiser that plans to sell 35,000 units during the next quarter at a selling price of $60 per unit. The company also gathered the following cost estimates for the next quarter:

Cost	Cost Formula
Cost of good sold	$30 per unit sold
Advertising expense	$180,000 per quarter
Sales commissions	5% of sales
Shipping expense	$40,000 per quarter + $5.00 per unit sold
Administrative salaries	$90,000 per quarter
Insurance expense	$10,000 per quarter
Depreciation expense	$60,000 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
Selling and administrative expenses:
Total selling and administrative expenses