Milden Company is a merchandiser that plans to sell 43,000 units during the next quarter at a selling price of $67 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 $34 per unit sold $190,000 per quarter 5% of sales: $36,000 per quarter + $4.00 per unit sold $100,000 per quarter $11,000 per quarter $70,000 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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Variable expenses
Milden Company
Contribution Format Income Statement
For the Next Quarter
Total variable expenses
Contribution margin
Fixed expenses
Total fixed expenses
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
Selling and administrative expenses
Total selling and administrative expenses
<Required 1
Transcribed Image Text: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. Variable expenses Milden Company Contribution Format Income Statement For the Next Quarter Total variable expenses Contribution margin Fixed expenses Total fixed expenses 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 Selling and administrative expenses Total selling and administrative expenses <Required 1
Milden Company is a merchandiser that plans to sell 43,000 units during the next quarter at a selling price of $67 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
$34 per unit sold
$190,000 per quarter.
5% of sales
$36,000 per quarter + $4.00 per unit sold
$100,000 per quarter
$11,000 per quarter
$70,000 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 43,000 units during the next quarter at a selling price of $67 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 $34 per unit sold $190,000 per quarter. 5% of sales $36,000 per quarter + $4.00 per unit sold $100,000 per quarter $11,000 per quarter $70,000 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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