Todrick Company is a merchandiser that reported the following information based on units sold:
Sales $
Beginning merchandise inventory $
Purchases $
Ending merchandise inventory $
Fixed selling expense question mark
Fixed administrative expense $
Variable selling expense $
Variable administrative expense question mark
Contribution margin $
Net operating income $
Required:
Prepare a contribution format income statement.
Prepare a traditional format income statement.
Calculate the selling price per unit.
Calculate the variable cost per unit.
Calculate the contribution margin per unit.
Which income statement format traditional format or contribution format would be more useful to managers in estimating how net operating income will change in response to changes in unit sales?
