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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1
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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