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Milden Company is a merchandiser that plans to sell 31,000 units during the next quarter at a selling price of $58 per unit. The company also gathered the following cost estimates for the next quarter Cost Cost of goods sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $28 per unit sold $178,000 per quarter 5% of sales $48,000 per quarter $5.00 per unit sold $88,000 per quarter $9,800 per quarter $58,000 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 31,000 units during the next quarter at a selling price of $58 per unit. The company also gathered the following cost estimates for the next quarter Cost Cost of goods sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $28 per unit sold $178,000 per quarter 5% of sales $48,000 per quarter $5.00 per unit sold $88,000 per quarter $9,800 per quarter $58,000 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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Milden Company is a merchandiser that plans to sell 31,000 units during the next quarter at a selling price of $58 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of goods sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $28 per unit sold $178,000 per quarter 5% of sales $48,000 per quarter $5.00 per unit sold $88,000 per quarter $9,800 per quarter $58,000 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. Variable expenses Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement for the next quarter. Milden Company Contribution Format Income Statement For the Next Quarter < Prev 7 of 7 Next >
Transcribed Image Text:Milden Company is a merchandiser that plans to sell 31,000 units during the next quarter at a selling price of $58 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost of goods sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $28 per unit sold $178,000 per quarter 5% of sales $48,000 per quarter $5.00 per unit sold $88,000 per quarter $9,800 per quarter $58,000 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. Variable expenses Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution format income statement for the next quarter. Milden Company Contribution Format Income Statement For the Next Quarter < Prev 7 of 7 Next >
Prepare a contribution format income statement for the next quarter. Variable expenses: Milden Company Contribution Format Income Statement For the Next Quarter Total variable expenses Contribution margin Fixed expenses Total fixed expenses 0 < Prev 7 of 7 k Next >
Transcribed Image Text:Prepare a contribution format income statement for the next quarter. Variable expenses: Milden Company Contribution Format Income Statement For the Next Quarter Total variable expenses Contribution margin Fixed expenses Total fixed expenses 0 < Prev 7 of 7 k Next >
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