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 expens Variable administrative expense Contribution margin Net operating income $ 450,000 $ 30,000 $ 380,000 $ 15,000 $ $ 18,000 $ 22,500 $ ? $ 90,000 $ 27,000 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? 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 Sales Variable expenses $ 450,000 Reg 1 Reg 2 Req 3 to 5 Reg 6 Prepare a contribution format income statement. Todrick Company Contribution Format Income Statement s $ 450,000 Sales Variable expenses: Cost of goods sold Selling expense Administrative expense $ 315,000 22,500 337,500 90,000 Contribution margin Fixed expenses: Selling expense Administrative expense 18,000 18,000 27,000 Net operating income $ Red Reg 2 > Book Reg 1 Red Req 3 to 5 Reg 6 Prepare a traditional format income statement. Print Todrick Company Traditional Income Statement erences Sales $ 450,000 315,000 135,000 Cost of goods sold Contribution margin Selling and administrative expenses: Selling expense Administrative expense 0 Net operating income Complete this question by entering your answers in the tabs below. ces Reg 1 Reg 2 Req 3 to 5 Reg 6 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 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 to 5 Reg 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? Traditional income statement Contribution income statement