Problem 1-19 (Algo) Traditional and Contribution Format Income Statements (L01-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: 2 Sales $ 285,000 Beginning merchandise inventory $ 19,000 Purchases $ 190,000 Ending merchandise inventory $ 9,500 Pixed selling expense Fixed administrative expense $ 11,400 Variable selling expense $ 14,250 Variable administrative expense 2 Contribution margin $ 57,000 Net operating income $ 17,100 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? Complete this question by entering your answers in the tabs below. Req1 Req 2 Req 3 to 5 Reg 6 Prepare a contribution format income statement. Todrick Company Contribution Format Income Statement Variable expenses 0 Fixed expenses 0 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 to 5 Reg 6 Prepare a traditional format income statement. Todrick Company Traditional Income Statement Sales 0 Selling and administrative expenses: 0 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 to 5 Req 6 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 3. Selling price per unit 4. Variable cost per unit 5. Contribution margin per unit Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 to 5 Reg 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? Traditional income statement Contribution income statement