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Can you please help me solve the two parts to this quesiton: Milden Company is a merchandiser that plans to sell 35,000 units during the next quarter at a selling price of $56 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $ 26 per unit sold Advertising expense $ 183,000 per quarter Sales commissions 6% of sales Shipping expense $ 57,000 per quarter + $4.00 per unit sold Administrative salaries $ 93,000 per quarter Insurance expense $ 10,300 per quarter Depreciation expense $ 63,000 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.

Can you please help me solve the two parts to this quesiton: Milden Company is a merchandiser that plans to sell 35,000 units during the next quarter at a selling price of $56 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $ 26 per unit sold Advertising expense $ 183,000 per quarter Sales commissions 6% of sales Shipping expense $ 57,000 per quarter + $4.00 per unit sold Administrative salaries $ 93,000 per quarter Insurance expense $ 10,300 per quarter Depreciation expense $ 63,000 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can you please help me solve the two parts to this quesiton:

Milden Company is a merchandiser that plans to sell 35,000 units during the next quarter at a selling price of $56 per unit. The company also gathered the following cost estimates for the next quarter:

 

Cost Cost Formula
Cost of good sold $ 26 per unit sold
Advertising expense $ 183,000 per quarter
Sales commissions 6% of sales
Shipping expense $ 57,000 per quarter + $4.00 per unit sold
Administrative salaries $ 93,000 per quarter
Insurance expense $ 10,300 per quarter
Depreciation expense $ 63,000 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.

Milden Company is a merchandiser that plans to sell 35,000 units during the next quarter at a selling price of $56 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $ 26 per unit sold $183,000 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. Selling and administrative expenses: 6% of sales $ 57,000 per quarter + $4.00 per unit sold $ 93,000 per quarter. $10,300 per quarter $ 63,000 per quarter Milden Company Traditional Format Income Statement For the Next Quarter Total selling and administrative expenses
Transcribed Image Text:Milden Company is a merchandiser that plans to sell 35,000 units during the next quarter at a selling price of $56 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $ 26 per unit sold $183,000 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. Selling and administrative expenses: 6% of sales $ 57,000 per quarter + $4.00 per unit sold $ 93,000 per quarter. $10,300 per quarter $ 63,000 per quarter Milden Company Traditional Format Income Statement For the Next Quarter Total selling and administrative expenses
Variable expenses: Milden Company Contribution Format Income Statement For the Next Quarter Total variable expenses Contribution margin Fixed expenses: Total fixed expenses
Transcribed Image Text:Variable expenses: Milden Company Contribution Format Income Statement For the Next Quarter Total variable expenses Contribution margin Fixed expenses: Total fixed expenses
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