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 $ 420,000 $ 28,000 $ 280,000 $ 14,000 ? $ 16,800 $ 21,000 ? $ 84,000 $ 25,200 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 response to changes in unit sales?

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 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 conizibution format) would be more useful to managers in estimating how net operating income will change in response to changes in unit sales? operating income will change in response to changes in unit sales? Complete this question by entering your answers in the tabs below. Which income statement format (traditional format or contribution format) woulc how net operating income will change in response to changes in unit sales? Traditional income statement Contribution income statement Complete this question by entering your answers in the tabs below. Prepare a traditional format income statement. Complete this question by entering your answers in the tabs belo 3. Calculate the selling price per usit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Todrick Company } & $420,000 \\ \hline Variable expenses: F c Contribution Format Income Statement & \\ \hline Cost of goods sold & & \\ \hline Selling expense & & \\ \hline Administrative expense & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Fixed expenses: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}