Problem 1-19 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 $ 240,000 $ 16,000 $ 160,000 Ending merchandise inventory $ 8,000 Fixed selling expense $ 2 Fixed administrative expense $ 9,600 Variable selling expense $ 12,000 Variable administrative expense $ Contribution margin $ 48,000 Net operating income $ 14,400 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 responses to changes in unit sales?