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Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 270,000 Beginning merchandise inventory $ 18,000 Purchases $
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:
Sales | $ | 270,000 | |||||||
Beginning merchandise inventory | $ | 18,000 | |||||||
Purchases | $ | 180,000 | |||||||
Ending merchandise inventory | $ | 9,000 | |||||||
Fixed selling expense | $ | ? | |||||||
Fixed administrative expense | $ | 10,800 | |||||||
Variable selling expense | $ | 13,500 | |||||||
Variable administrative expense | $ | ? | |||||||
Contribution margin | $ | 54,000 | |||||||
Net operating income | $ | 16,200 | |||||||
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?
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