Prepare a contribution format income statement.

Todrick Company
Contribution Format Income Statement
Variable expenses:
		0
Fixed expenses:
		0

Prepare a traditional format income statement.

Todrick Company
Traditional Income Statement
		0
Selling and administrative expenses:
		0

3. Calculate the selling price per unit.

4. Calculate the variable cost per unit.

5. 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 responses to changes in unit sales?

	Traditional income statement contribution format

Todick Company is a merchandser that reported the following in formstion based on 1000 units sold $248,000 526,038 5 16,ee xed selling epense vetable salling ense 9,680 12,0n3 48,88 34408 Required Prepare a contribution tformat income ststerment Celcuiste the seling price per unit Caoae the conentasion msgn per unit 5 which iriono staco ront f rmoc rosto rial format or contrta tion tornit would tr more useful to manages in estimating how net ngce wil chonge in responses to changes in unit soles 92 305