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Milden Company is a merchandiser that plans to sell 29,000 units during the next quarter at a selling price of $54 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 $24 per unit sold $174,000 per quarter 5% of sales $84,000 per quarter $4.00 per unit sold $84,000 per quarter $9,400 per quarter $54,000 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. Co mplete 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
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Answer #1

Contribution format Income statement of Milden Sales (29,000 Units * $54 Per unit) Less: Variable cost Cost of goods sold (29,000 Units * $24 Per unit) Sales commission ($1,566,000+5%) Shipping expenses (29,000 Units * $4 Per unit) Contribution margin Less : Fixed cost Advertising expenses Shipping expenses Administrative salaries Insurance expenses Depreciation expenses Net income for the Next er $1,566,000 (S696,000) ($78,300 $116,000 $675,700 ($174,000 ($84,000 ($84,000) (S9,400) 54,000 $270,300

Traditional format income statement of Milden Company for the Next Sales (29,000 Units * $54 Per unit) Less : Cost of goods sold (29,000 Units * $24 Per unit) Gross margin Less Advertising expenses Sales commission ($1,566,000+5%) Shipping expenses [ S84,000 + 29,000 Units * $4 Per unit] (S200,000) Administrative salaries Insurance expenses Depreciation expenses Net income er $1,566,000 696,000 $870,000 atin es ($174,000) (S78,300) ($84,000) (S9.400) S54,000 $270,300

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