Todrick Company is a merchandiser that reported the following information based on 1000 units sold: 4 points $ 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 $ 240,000 $ 16,000 $ 160,000 8,600 $ 7 $ 9,680 $ 12,000 $ 7 $ 48,000 $ 14,400 eBook Print References 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? Reg 1 Reg 2 Reg 3 to 5 Reg 6 Prepare a contribution format income statement. $ 240,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost of goods sold $ 168,000 Selling expense 12,000 Administrative expense 12,000 192,000 48,000 Contribution margin Fixed expenses Selling expense Administrative expense $ 24,000 9,600 33,600 14,400 $ Net operating income Req 1 Req 2 Req 3 to 5 Reg 6 Prepare a traditional format income statement. Todrick Company Traditional Income Statement $ 240,000 168,000 72,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Selling expense Administrative expense Net operating income $ 36,000 21,600 24,000 9,600 91,200 14,400 $