b B Book Problem 1-19 (Algo) Traditional and Contribution Format Income Statements (LO1-6) Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise Inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expence Variable selling expens Variable administrative expense Contribution margin Net operating Incone 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. inces 5. Calculate the contribution margin per unit. 450,000 $30,000 $300,000 $ 15,000 7 510,000 22,500 $90,000 $ 27.000 6. Which income statemeal 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? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 to 5 Req 6 Prepare a contribution format income statement. Ches un by emnering your answers in the tabs below. Req 1 Req 2 Req 3 to 5 Req 6 Prepare a traditional format income statement. Todrick Company Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense 0 0 < Req 1 Req 3 to 5 >> 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 response to changes in unit sales? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 to 5 Req 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 Variable administrative spense Contribution margin Het operating incone 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 $90.000 $27,000 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 response to changes in unit sales? 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 response to changes in unit sales? Traditional income statement) Contribution income statement