Req $1$

Req $2$

Req $3$ to $5$

Req $6$

Prepare a traditional format income statement. $\begin{array}{cc}\text{R}\text{e}\text{q}1& \text{R}\text{e}\text{q}2\\ 3.\text{C}\text{a}\text{l}\text{c}\text{u}\text{l}\text{a}\text{t}\text{e}\text{t}\text{h}\text{e}\text{s}\text{e}\text{l}\text{l}\text{i}\text{n}\text{g}\text{p}\text{r}\text{i}\text{c}\text{e}\text{p}\text{e}\text{r}\text{u}\text{n}\text{i}\text{t}\text{.}& ?\\ 4.\text{C}\text{a}\text{l}\text{c}\text{u}\text{l}\text{a}\text{t}\text{e}\text{t}\text{h}\text{e}\text{v}\text{a}\text{r}\text{i}\text{a}\text{b}\text{l}\text{e}cost\text{p}\text{e}\text{r}\text{u}\text{n}\text{i}\text{t}\text{.}& ?\\ 5.\text{C}\text{a}\text{l}\text{c}\text{u}\text{l}\text{a}\text{t}\text{e}\text{t}\text{h}\text{e}\text{c}\text{o}\text{n}\text{t}\text{r}\text{i}\text{b}\text{u}\text{t}\text{i}\text{o}\text{n}\text{m}\text{a}\text{r}\text{g}\text{i}\text{n}\text{p}\text{e}\text{r}\text{u}\text{n}\text{i}\text{t}\text{.}& ?\\ 3.\text{S}\text{e}\text{l}\text{l}\text{i}\text{n}\text{g}\text{p}\text{r}\text{i}\text{c}\text{e}\text{p}\text{e}\text{r}\text{u}\text{n}\text{i}\text{t}& ?\\ 4.\text{V}\text{a}\text{r}\text{i}\text{a}\text{b}\text{l}\text{e}cost\text{p}\text{e}\text{r}\text{u}\text{n}\text{i}\text{t}& ?\\ 5.\text{C}\text{o}\text{n}\text{t}\text{r}\text{i}\text{b}\text{u}\text{t}\text{i}\text{o}\text{n}\text{m}\text{a}\text{r}\text{g}\text{i}\text{n}\text{p}\text{e}\text{r}\text{u}\text{n}\text{i}\text{t}& ?\end{array}$ 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 statementProblem $1-19($Algo$)$ Traditional and Contribution Format Income Statements $[$LO$1-6]$

Todrick Company is a merchandiser that reported the following information based on $1,000$ units sold:

Required:

Prepare a contribution format income statement.

Prepare a traditional format income statement.

Calculate the selling price per unit.

Calculate the variable cost per unit.

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 response to changes in unit sales?

Complete this question by entering your answers in the tabs below.

Req $1$

Req $3$ to $5$

Req $6$

Prepare a contribution format income statement.