Solution 1:
Todrick Company | ||
Contribution format Income Statement | ||
Sales | $1,80,000 | |
Variable Expenses: | ||
Coat of goods sold ($12000+$120000-$6000) | $1,26,000 | |
Variable Selling Expenses | $9,000 | |
Variable Administrative Expenses ($144000-126000-9000) | $9,000 | |
Total Variable Expenses ($180000-$36000) | $1,44,000 | |
Contribution Margin | $36,000 | |
Fixed Expenses: | ||
Fixed Selling Expenses ($25200 -$7200) | $18,000 | |
Fixed Administrative Expenses | $7,200 | |
Total Fixed Expenses ($36000-$10800) | $25,200 | |
Net Operating Income | $10,800 |
Solution 2:
Todrick Company | ||
Traditional format Income Statement | ||
Sales | $1,80,000 | |
Less: Cost Of Goods sold | $1,26,000 | |
Gross Profit | $54,000 | |
Selling and Administrative Expenses: | ||
Variable Selling Expenses | $9,000 | |
Variable Administrative Expenses | $9,000 | |
Fixed Selling Expenses | $18,000 | |
Fixed Administrative Expenses | $7,200 | |
Total expenses | $43,200 | |
Net Operating Income | $10,800 |
Solution 3:
Selling Price per unit = $180000/1000 = $180
Solution 4:
Variable cost per unit = $144000/ 1000 = $144
Solution 5:
Contribution margin per unit = $36000/1000 = $36
Solution 6:
Contribution format income statement would be more useful.
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
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