Using the data set below, construct Traditional and Contribution Format Income Statements.
Why would you use one format over the other? (Leaning on your new-found Word Economy skillset, answer this question in 50 words or less.
Data Set
Sales	$27,500
Variable costs:
Cost of goods sold	$6,800
Variable selling	$750
Variable administrative	$400
Fixed costs:
Fixed selling	$2,350			Hint
Fixed administrative	$1,825			I'm looking for two insights.
A. Calculations - 75% of this Spreadsheet Grade		B. Worded Answer(s) - 25% of this Spreadsheet Grade
Traditional Format Income Statement			Delete this line and write your answers in this box.
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses:
Selling
Administrative
Net operating income
								Word Limit	Word Count
								50	10
Contribution Format Income Statement
Sales
Variable expenses:
Cost of goods sold
Variable selling
Variable administration
Contribution margin
Fixed expenses:
Fixed selling
Fixed administrative
Net operating income