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	$ 390,000
Beginning merchandise inventory	$ 26,000
Purchases	$ 260,000
Ending merchandise inventory	$ 13,000
Fixed selling expense	?
Fixed administrative expense	$ 15,600
Variable selling expense	$ 19,500
Variable administrative expense	?
Contribution margin	$ 78,000
Net operating income	$ 23,400

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?

Mrepare a contribution format income statemarnt Brepar F a tradrianal formar inceme stafiement oetabing income witi change bo response to changes in unis sales? Answer is not complete. Complete this queatise by entering your anmwers in the tabs below. 3. Calodete the setare price per ant. 4. Calculate the vastable cost per unit. 5. Calculate the contributen mergin per usit