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Problem 1-19 Traditional and Contribution Format Income Statements (L01-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales

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Problem 1-19 Traditional and Contribution Format Income Statements (L01-6] 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 $ 225,000 $ 15,000 $ 150,000 $ 7,500 $ 2 $ 9,000 $ 11.250 $ 2 $ 45,000 $ 13,500 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 formator 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. Reg 1 Reg 2 Req 3 to 5 Reg 6 Prepare a contribution format income statement. Todrick Company Contribution Format Income Statement Variable expenses Fixed expenses: Req 1 Req 2 Req 3 to 5 Reg 6 Prepare a traditional format Income statement. Todrick Company Traditional Income Statement ces Selling and administrative expenses: TULUNMUYULMU 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution fa how net operating income will change in responses to changes in unit Complete this question by entering your answers in the tabs below. ook Req 1 Req 2 Req 3 to 5 Reg 6 Print erences 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 Reg 2 Reg

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