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Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:...

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Accounting

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:

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?imageimageimage

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 $ 300,000 $ 20,000 $ 200,000 $ 7,000 $ ? $ 12,000 $ 15,000 $ ? $ 60,000 $ 18,000 Todrick Company Contribution Format Income Statement Variable expenses: Cost of goods sold 0 Fixed expenses: 0 Todrick Company Traditional Income Statement 0 Selling and administrative expenses: 0

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