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Edit View History Bookmarks Window Help ? ? 18% D Tue 6: r 1 Homework Help Save & Exit 0 You skipped this question in the previous attempt Check my Milden Company is a merchandiser that plans to sell 33,000 units during the next quarter at a selling price of $59 per unit. The company also gathered the following cost estimates for the next quarter Cost of good sold Advertising expense 29 per unit sold $179,000 per quarter Shipping expense Adminiatrative salarles Insurance expense Depreciation expense 19,000 per quarter $6.00 per unit sold 89,000 per quarter 9,900 per quarter 59,000 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2

Explanation / Answer

CONTRIBUTION MARGIN INCOME FORMAT Sales revenue (33000 units @ 59) 1947000 Less: variable Cost Cost of Goods sold (33000*29) 957000 Sales commission ($ 1947000*6%) 116820 Shipping expense (33000*6) 198000 Contribution margin 675180 Less: Fixed cost: Advertissing expense 179000 Shipping cost 19000 Admin salaries 89000 Insurance 9900 Depreciation 59000 Net income 319280 TRADITIONAL FORMAT INCOME STATEMENT Sales revenue 1947000 Less: Cost of Goods sold Variable (33000*29) 957000 Depreciation 59000 Insurance 9900 Gross margin 921100 Less: Selling and admin expense Sales commission 116820 Shipping expense (198000+19000) 217000 Advertisement 179000 Admin salaries 89000 net income 319280 Note: In the absence of information, insurance and depreciation expense is part of cost of goods sold.

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