Number of units sold $...................35,000$

Selling price per unit $...................$ $$40$

Variable selling expense per unit $........$ $$3$

Variable administrative expense per unit $..$ $$1$

Total fixed selling expense $..............$ $$45,000$

Total fixed administrative expense $.......$ $$28,000$

Beginning merchandise inventory $........$ $$21,000$

Ending merchandise inventory $..........$ $$35,000$

Merchandise purchases $................$ $$805,000$

Review Problem $2$: Income Statement Formats

McFarland, Inc., is a merchandiser that provided the following information:

Required:

$1.$ Prepare a traditional income statement.