Milden Company is a merchandiser that plans to sell 41,000 units during the next quarter at a selling price of $66 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 Required: Cost Formula $33 per unit sold $189,000 per quarter 6% of sales $39,000 per quarter + $4.00 per unit sold $99,000 per quarter $10,900 per quarter $69,000 per quarter 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 contribution format income statement for the next quarter. Milden Company Contribution Format Income Statement For the Next Quarter Variable expenses:
Milden Company is a merchandiser that plans to sell 41,000 units during the next quarter at a selling price of $66 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 Required: Cost Formula $33 per unit sold $189,000 per quarter 6% of sales $39,000 per quarter + $4.00 per unit sold $99,000 per quarter $10,900 per quarter $69,000 per quarter 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 contribution format income statement for the next quarter. Milden Company Contribution Format Income Statement For the Next Quarter Variable expenses:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
am. 174.
Transcribed Image Text:Milden Company is a merchandiser that plans to sell 41,000 units during the next quarter at a selling price of $66 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
Required:
Cost Formula
$33 per unit sold
$189,000 per quarter
6% of sales
$39,000 per quarter + $4.00 per unit sold
$99,000 per quarter
$10,900 per quarter
$69,000 per quarter
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 contribution format income statement for the next quarter.
Milden Company
Contribution Format Income Statement
For the Next Quarter
Variable expenses:
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