Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:

Sales	$	285,000
Beginning merchandise inventory	$	19,000
Purchases	$	190,000
Ending merchandise inventory	$	9,500
Fixed selling expense	$	?
Fixed administrative expense	$	11,400
Variable selling expense	$	14,250
Variable administrative expense	$	?
Contribution margin	$	57,000
Net operating income	$	17,100

Required:

1. Prepare a contribution format income statement.

2. Prepare a traditional format income statement

Prepare a contribution format income statement.

Todrick Company
Contribution Format Income Statement
Sales		$285,000
Variable expenses:
Cost of goods sold	$199,500
Administrative expense	14,250
Selling expense	14,250
		228,000
Contribution margin		57,000
Fixed expenses:
Selling expense	$28,500
Administrative expense	11,400
		39,900
Net operating income		$17,100

Prepare a traditional format income statement.

Todrick Company
Traditional Income Statement
Sales		$285,000
Cost of goods sold		199,500
Gross margin		85,500
Selling and administrative expenses:
Selling expense
Administrative expense
		0
Net operating income