Problem 1-19 Contribution Format Income Statement Sales $300,000 Variable expenses: COGS to run X-ray machines 3. Fixed expenses: Selling Admin. Net operating income 5. Selling expense Admin. Expense Contribution Margin 12,000 $30,000 Selling price per unit is S Contribution margin per unit S $60,000 $18.000 4. 6. Traditional Income Statement Sales Cost of goods sold(*) Gross margin Selling & admin. expenses ($15,000+S Admin (S __+$12,000) $300,000 $87,000 Net operating income (*) COGS computation includes: $20,000+ $ Variable cost per unit is -S_ Contribution format or Traditional? Reason for your choice. $69,000 $18.000 Page 2 c