Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 390,000 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: 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. $ 26,000 $ 260,000 $ 13,000 ? $ 15,600 $ 19,500 ? $ 78,000 $ 23,400 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? Req 1 Req 2 Req 3 to 5 Req 6 Prepare a traditional format income statement. Cost of goods sold Gross margin Todrick Company Traditional Income Statement $ 390,000 273,000 117,000 Selling and administrative expenses: Fixed manufacturing overhead $ 39,000 Variable manufacturing overhead 19,500 Administrative expense 15,600 19,500 93,600 Net operating income $ 23,400 < Req 1 Req 3 to 5 >