Milden Company is a merchandiser that plans to sell 31,000 units during the next quarter at a selling price of $55 per unit. The company also gathered the following cost estimates for the next quarter:

Cost	Cost Formula
Cost of good sold	$25 per unit sold
Advertising expense	$175,000 per quarter
Sales commissions	6% of sales
Shipping expense	$60,000 per quarter + $5.00 per unit sold
Administrative salaries	$85,000 per quarter
Insurance expense	$9,500 per quarter
Depreciation expense	$55,000 per quarter

Required:

1. Prepare a contribution format income statement for the next quarter.

2. Prepare a traditional format income statement for the next quarter.