Milden Company is a merchandiser that plans to sell 37,000 units during the next quarter at a
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Question:
Milden Company is a merchandiser that plans to sell 37,000 units during the next quarter at a selling price of $55 per unit. The company also gathered the following cost estimates for the next quarter:
Cost | Cost formula |
Cost of good sold | $27 per unit sold |
Advertising expense | $184,000 per quarter |
Sales commissions | 5% of sales |
Shipping expense | $24,000 per quarter + $5.00 per unit sold |
Administrative salaries | $94,000 per quarter |
Insurance expense | $10,400 per quarter |
Depreciation expense | $64,000 per quarter |
Required:
1. Prepare a contribution format income statement for the next quarter.
2. Prepare a traditional format income statement for the next quarter.
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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