Milden Company is a merchandiser that plans to sell 29,000 units during the next quarter at a selling price of $54 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 $24 per unit sold $174,000 per quarter 5% of sales $84,000 per quarter + $4.00 per unit sold $84,000 per quarter $9,400 per quarter $54,000 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 29,000 units during the next quarter at a selling price of $54 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 $24 per unit sold $174,000 per quarter 5% of sales $84,000 per quarter + $4.00 per unit sold $84,000 per quarter $9,400 per quarter $54,000 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.
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 29,000 units during the next quarter at a selling price of $54 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
$24 per unit sold.
$174,000 per quarter.
5% of sales
$84,000 per quarter + $4.00 per unit sold
$84,000 per quarter.
$9,400 per quarter
$54,000 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
Prepare a traditional format income statement for the next quarter.
Milden Company
Traditional Format Income Statement
For the Next Quarter
Transcribed Image Text:Required 1 Required 2
Prepare a traditional format income statement for the next quarter.
Milden Company
Traditional Format Income Statement
For the Next Quarter
Selling and administrative expenses
Total selling and administrative expenses
< Required 1
0
Required 2 >
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