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Milden Company is a merchandiser that plans to sell 4 1 , 0 0 0 units during the next quarter at a selling price of

Milden Company is a merchandiser that plans to sell 41,000 units during the next quarter at a selling price of $59 per unit. The company also gathered the following cost estimates for the next quarter:
Cost Cost Formula
Cost of goods sold $30 per unit sold
Advertising expense $186,000 per quarter
Sales commissions 5% of sales
Shipping expense $16,000 per quarter + $5.00 per unit sold
Administrative salaries $96,000 per quarter
Insurance expense $10,600 per quarter
Depreciation expense $66,000 per quarter
Required:
Prepare a contribution format income statement for the next quarter.
Prepare a traditional format income statement for the next quarter.

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