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Problem 1-19 Traditional and Contribution Format Income Statements (L01-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Het operating income $ 270,000 $ 18,000 $ 180,000 5 9,000 $ 2 $ 10,800 $ 13,500 $ 2 $ 54,000 $ 16,200 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format Income statement 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating Income will change in responses to changes in unit sales? Comiatt Reg 1 Reg 2 Reg 3 to 5 Reg 6 Prepare a contribution format income statement. 5 points Book $ 270,000 Todele Company Contribution Format Income tatament Sales Variable expenses: Cost of goods sold $ 169,000 Selling expense 13,500 Administrative expense 13,500 References 210,000 Fixed expenses Administrative expense Selling expense 0