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Milden Company is a merchandiser that plans to sell 33,000 units during the next quarter at a selling price of $59 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 $29 per unit sold $179,000 per quarter 68 of sales $19,000 per quarter + $6.00 per unit sold $89,000 per quarter $9,900 per quarter $59,000 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 33,000 units during the next quarter at a selling price of $59 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 $29 per unit sold $179,000 per quarter 68 of sales $19,000 per quarter + $6.00 per unit sold $89,000 per quarter $9,900 per quarter $59,000 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 33,000 units during the next quarter at a selling price of $59 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 $29 per unit sold $179,000 per quarter 68 of sales $19,000 per quarter + $6.00 per unit sold $89,000 per quarter $9,900 per quarter $59,000 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.
Transcribed Image Text:Milden Company is a merchandiser that plans to sell 33,000 units during the next quarter at a selling price of $59 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 $29 per unit sold $179,000 per quarter 68 of sales $19,000 per quarter + $6.00 per unit sold $89,000 per quarter $9,900 per quarter $59,000 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.
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