Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory $ 300,000 $ 20,000 $ 200,000 $ 7,000 ? $ 12,000 Fixed selling expense Fixed administrative expense Variable selling expense $ 15,000 Variable administrative expense Contribution margin $ 60,000 Net operating income $ 18,000 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. 5. Calculate the contribution margin per unit. 6. Which income statement format (traditional format or contribution format) would be more useful to managers in es operating income will change in response to changes in unit sales? Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost of goods sold Selling expense Administrative expense Contribution margin $ 213,000 15,000 $ 300,000 228,000 + Fixed expenses: Selling expense 12,000 Administrative expense Net operating income 12,000