Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning nerchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $ 435,000 $ 29,000 $ 290,000 $ 14,500 $ 2 $ 17,400 $ 21,750 $ ? $ 87,000 $ 26,100 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Red 3 to 5 Reg 6 Prepare a contribution format income statement. $ 435.000 Todrick Company Contribution Format Income Statement Sales Variable expenses Cost of goods sold S 304,500 Selling expense 21,750 Administrative expense Olo 326,250 Contribution margin Fixed expenses Selling expense Administrative expense ol 0 Net operating income Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning nerchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $ 435,000 $ 29,000 $ 290,000 $ 14,500 $ 2 $ 17,400 $ 21,750 $ 2 $ 87,000 $ 26,100 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3 to 5 Reg 6 Prepare a traditional format income statement. $ Todrick Company Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense ololo 435,000 304,500 130,500 0 Net operating income Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: 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 $ 435,000 $ 29,000 $ 290,000 $ 14,500 $ 17,400 $ 21.750 $ $ 87,000 $ 26,100 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 to 5 Req 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 3. S 435 Selling price per unit Variable cost per unit Contribution margin per unit 5. S 87
