1. Business
  2. Accounting
  3. problem 119 traditional and contribution format income statements lo16 3...

Question: problem 119 traditional and contribution format income statements lo16 3...

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Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6) 3 Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: 300,000 20,000 s 200,000 ,000 Sales Beginning merchandise inventory Ending nerehandise inventory Fixed selling expense rixed administrative expense Variable selling expense Variable administrative expense Contribation margin Net operating income 7 03:3707 12,000 15,000 Print 60,000 18,000 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. Celculate the contribution margin per unit 6. Which income statement format (traditional format operating income wil change in responses to changes in unit sales? or contribution format) would be more useful to managers in estimating how net
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