PROBLEM 1-25 Traditional and Contribution Format Income Statements LO1-6 Milden Company is a merchandiser that plans...

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PROBLEM 1-25 Traditional and Contribution Format Income Statements LO1-6 Milden Company is a merchandiser that plans to sell 12,000 units during the next quarter at a selling price of $100 per unit. The company also gathered the following cost estimates for the next quarter Cost Cost of good sold. Advertising expense Sales commissions. Shipping expense Administrative salaries Insurance expense. Depreciation expense Cost Formula $35 per unit sold $210,000 per quarter 6% of sales $28,000 per quarter + $9.10 per unit sold $145,000 per quarter $9,000 per quarter $76,000 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. PROBLEM 1-25 Traditional and Contribution Format Income Statements LO1-6 Milden Company is a merchandiser that plans to sell 12,000 units during the next quarter at a selling price of $100 per unit. The company also gathered the following cost estimates for the next quarter Cost Cost of good sold. Advertising expense Sales commissions. Shipping expense Administrative salaries Insurance expense. Depreciation expense Cost Formula $35 per unit sold $210,000 per quarter 6% of sales $28,000 per quarter + $9.10 per unit sold $145,000 per quarter $9,000 per quarter $76,000 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.