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 $ 420,000 $ 28,000 $ 280,000 $ 14,000 TA DA GA GA GA 16,800 21,000 $ $ 84,000 25, 200 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? Prepare a contribution format income statement. $ 420,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Administrative expense Cost of goods sold 294,000 : Selling expense 21,000 315,000 Fixed expenses: Prepare a traditional format income statement. Todrick Company Traditional Income Statement Selling and administrative expenses: 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 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