Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:

Sales	$	450,000
Beginning merchandise inventory	$	30,000
Purchases	$	300,000
Ending merchandise inventory	$	15,000
Fixed selling expense	$	?
Fixed administrative expense	$	18,000
Variable selling expense	$	22,500
Variable administrative expense	$	?
Contribution margin	$	90,000
Net operating income	$	27,000

Required:

1. Prepare a contribution format income statement.

2. Prepare a traditional format income statement.

Todrick Company
Contribution Format Income Statement
Sales		$450,000
Variable expenses:
Cost of goods sold	$315,000
Selling expense	22,500
Administrative expense	?
		450,000
Contribution margin		90,000
Fixed expenses:
Selling expense	?
Administrative expense	18,000
?		45,000
Net operating income		$27,000

Prepare a traditional format income statement.

Todrick Company
Traditional Income Statement
		0
Selling and administrative expenses:
		0