Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 315.000 $ 21,000 210.000 10,500 Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Pixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 12,600 15,750 63,000 18,900 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? Complete this question by entering your answers in the tubs below. Reg 1 Reg 2 Req 3 to 5 Reg 6 Prepare a contribution format income statement. Todrick Company Contribution Format Income Statement Variable expenses: Fixed expenses: Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 to 5 Req 6 Prepare a traditional format income statement. Todrick Company Traditional Income Statement SO Selling and administrative expenses: 0 Reg 1 Req 3 to 5 > $ 315,000 $ 21,000 $ 210,000 $ 10.500 Sales Beginning merchandise inventory Purchase Ending merchandise inventory Fixed selling expense Pixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income 12.600 15.750 $ $ $ $ $ 63.000 18.900 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 to 5 Reg 6 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 3. Selling price per unit 4. Variable cost per unit 5. Contribution margin per unit Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expens Contribution margin Net operating income $315.000 $ 21,000 210,000 10,500 7 12,600 15,750 63,000 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 them 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in estima net operating income will change in responses to changes in unit sales? Complete this question by entering your answers in the tabs below Reg 2 Req 3 to 5 Reg 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? Traditional income statement Contribution income statement
