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 Required: $420,000 $ 28,000 $ 280,000 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. $ 14,000 2 $ 16,800 $ 21,000 2 $ 84,000 $ 25,200 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 response to changes in unit sales? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 to 5 Req 6 Prepare a contribution format income statement. Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost of goods sold $ 294,000 Variable manufacturing overhead 21,000 Variable manufacturing overhead 21,000 Fixed expenses: $ 420,000 336,000 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. Direct labor Cost of goods sold Gross margin Todrick Company Traditional Income Statement $ 420,000 294,000 126,000 Selling and administrative expenses: Beginning merchandise inventory $ 21,000 Administrative expense Direct labor Administrative expense 21,000 42,000 16,800 100,800 Net operating income $ 25,200 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 to 5 Req 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 < Req 2 Req 6 >