Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $...
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Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 195,000 $ 13,000 Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense. Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $ 130,000 $ 6,500 7 $ 7,800 $ 9,750 7 $ 39,000 $ 11,700 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? Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 195,000 $ 13,000 Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense. Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $ 130,000 $ 6,500 7 $ 7,800 $ 9,750 7 $ 39,000 $ 11,700 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?
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Ans 1 TODRICK COMPANY Contribution Format Income Statement ParticularsAmountAmount Sales 195000 Vari... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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