Milden Company is a merchandiser that plans to sell 39,000 units during the next quarter at a selling price of $65 per unit. The company also gathered the following cost estimates for the next quarter:

CostCost FormulaCost of good sold$32 per unit soldAdvertising expense$188,000 per quarterSales commissions5% of salesShipping expense$42,000 per quarter + $4.00 per unit soldAdministrative salaries$98,000 per quarterInsurance expense$10,800 per quarterDepreciation expense$68,000 per quarter

Required:

1. create a contribution format income statement for the next quarter.

2. create a traditional format income statement for the next quarter.