Problem 1-19 (Static) 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 $ 300,000 $ 20,000 $ 200,000 $ 7,000 $ ? $ 12,000 $ 15,000 $ ? $ 60,000 $ 18,000 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? Todrick Company Contribution Format Income Statement Variable expenses: Fixed expenses: Todrick Company Traditional Income Statement Selling and administrative expenses: 3. Selling price per unit 4. Variable cost per unit 5. Contribution margin per unit Traditional income statement Contribution income statement