Milden Company is a merchandiser that plans to sell $41,000$ units during the next quarter at a selling price of $$59$ per unit. The company also gathered the following cost estimates for the next quarter:

Cost Cost Formula

Cost of goods sold $$30$ per unit sold

Advertising expense $$186,000$ per quarter

Sales commissions $5\%$ of sales

Shipping expense $$16,000$ per quarter $+$ $$5\mathrm{.}00$ per unit sold

Administrative salaries $$96,000$ per quarter

Insurance expense $$10,600$ per quarter

Depreciation expense $$66,000$ per quarter

Required:

Prepare a contribution format income statement for the next quarter.

Prepare a traditional format income statement for the next quarter.

Answer rating: 100% (QA)

Answer To prepare the contribution format income statement and the traditional format income stateme... View the full answer