90.2K

Verified Solution

Link Copied!

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 195,000 13,000 130,000 6,500 Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income es es es es es es es es es 7,800 9,750 $ $ 39,000 11,700 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? Prepare a traditional format income statement. Todrick Company Traditional Income Statement Selling and administrative expenses: Req1 Req 3 to 5 > Complete this question by entering your answers in the tabs below. Req1 Req 2 Req 3 to 5 Reg 6 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate the contribution margin per unit. 3. Selling price per unit 4. Variable cost per unit 5. Contribution margin per unit Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 to 5 Req 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? O Traditional income statement Contribution income statement Reg 3 to 5 Req6 )

Answer & Explanation Solved by verified expert

See Answer