Problem 1-19 (Algo) Traditional and Contribution Format Income Statements [LO1-6] 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 Net operating income 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 response to changes in unit sales? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 to 5 Sales Variable expenses Selling expense Req 6 Prepare a contribution format income statement. $360,000 $ 24,000 $ 240,000 $ 12,000 ? $ 14,400 $ 18,000 ? $ 72,000 $ 21,600 Todrick Company Contribution Format Income Statement $ 18,000 $ 360,000

Problem 1-19 (Algo) Traditional and Contribution Format Income Statements [LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold Required: 1. Prepare a contribution format income stotement 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 of contribution formag) would be more useful to managers in estimating how net operating income will change in response to changes in unit sales? Complete this question by entering your answers in the tobs below Prepare a contribution format income statement