Vale Inc., a merchandiser, reported the following information for a recent period based on 1,000 units sold:

Sales	$	315,000
Beginning merchandise inventory	$	21,000
Purchases	$	210,000
Ending merchandise inventory	$	10,500
Fixed selling expense	$	?
Fixed administrative expense	$	12,600
Variable selling expense	$	15,750
Variable administrative expense	$	?
Contribution margin	$	63,000
Net operating income	$	18,900

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.

repare a contribution format income statement.

Vale, Inc.
Contribution Format Income Statement
Variable expenses:
		0
Fixed expenses:
		0

Prepare a traditional format income statement.

Vale, Inc.
Traditional Income Statement
		0
Selling and administrative expenses:
		0

• Req 1
• Req 2