Milden Company is a merchandiser that plans to sell 23,000 units during the next quarter at a selling price of $51 per unit. The company also gathered the following cost estimates for the next quarter: Cost Formula Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $21 per unit sold $171,000 per quarter 68 of sales $42,000 per quarter $81,000 per quarter $9,100 per quarter $51,000 per quarter $7.00 per unit sold. 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 23,000 units during the next quarter at a selling price of $51 per unit. The company also gathered the following cost estimates for the next quarter: Cost Formula Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $21 per unit sold $171,000 per quarter 68 of sales $42,000 per quarter $81,000 per quarter $9,100 per quarter $51,000 per quarter $7.00 per unit sold. Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Milden Company is a merchandiser that plans to sell 23,000 units during the next quarter at a selling price of $51 per unit. The
company also gathered the following cost estimates for the next quarter:
Cost Formula
Cost
Cost of good sold
Advertising expense
Sales commissions
Shipping expense
Administrative salaries
Insurance expense
Depreciation expense
Required 1
$21 per unit sold
$171,000 per quarter
68 of sales
Required 2
$42,000 per quarter
$81,000 per quarter
$9,100 per quarter
$51,000 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.
$7.00 per unit sold.
Prepare a contribution format income statement for the next quarter.
Milden Company
Contribution Format Income Statement
For the Next Quarter
Transcribed Image Text:Regard 1
Prepare a controuen format income statement for the next quarter
Varen
WWW.OL
Center Forment
For the Quee
Gene
and
Required
Prepare a corebution format income statement for the next a
2. Pepere e tradtional format inco
com
Wide Compery
For the Rest Queter
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6
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