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

Sales	$	375,000
Beginning merchandise inventory	$	25,000
Purchases	$	250,000
Ending merchandise inventory	$	12,500
Fixed selling expense	$	?
Fixed administrative expense	$	15,000
Variable selling expense	$	18,750
Variable administrative expense	$	?
Contribution margin	$	75,000
Net operating income	$	22,500

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?

Req1Req2][Req3to5][Req6 Prepare a contribution format income statement. \begin{tabular}{|l|l|l|l|} \hline Contribution Format Income Statement \\ \hline Variable expenses: & Todrick Company \\ \hline & & & \\ \hline & & & \\ \hline Fixed expenses: & & & \\ \hline \end{tabular} Prepare a traditional format income statement. \begin{tabular}{l|l|l|l|} \hline Req 1 & Req 2 & Req3 to 5 & Req6 \\ \hline \end{tabular} 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. \begin{tabular}{|l|l|} \hline & \\ \hline 3. & Selling price per unit \\ \hline 4. & Variable cost per unit \\ \hline 5. & Contribution margin per unit \\ \hline \end{tabular} Req 1 Req 2 Req 3 to 5,Req6 Which income statement format (traditional format or contributio how net operating income will change in responses to changes in Traditional income statement Contribution income statement