1. | ||
Todrick Company | ||
Traditional Income Statement | ||
Sales | 375000 | |
Variable expense : | ||
Cost of goods sold [ Beginning merchandise inventory + Purchases - Ending merchandise inventory = 25000 + 250000 - 12500 ] | 262500 | |
Selling expense | 18750 | |
Administrative expense [ 375000 - 262500 - 18750 - 75000 ] | 18750 | |
300000 | ||
Contribution margin | 75000 | |
Fixed expenses : | ||
Selling expense [ 75000 - 15000 - 22500 ] | 37500 | |
Administrative expense | 15000 | |
52500 | ||
Net operating income | 22500 |
2. | ||
Todrick Company | ||
Traditional Income Statement | ||
Sales | 375000 | |
Cost of goods sold | 262500 | |
Gross margin | 112500 | |
Selling and administrative expenses: | ||
Selling expense [ 37500 + 18750 ] | 56250 | |
Administrative expense [ 15000 + 18750 ] | 33750 | |
90000 | ||
Net operating income | 22500 |
3. | |
Selling price per unit = Sales / Units sold = 375000 / 1000 | 375 |
4. | |
Variable cost per unit = Total variable cost / Units sold = 300000 / 1000 | 300 |
5. | |
Contribution margin per unit = Total contribution margin per unit / Units sold = 75000 / 1000 | 75 |
6. |
Answer : Contribution income statement |
Reason : With help of contribution margin income statement operating leverage can be calculated and this will be used to estimate how net operating income will change in response to change in unit sales. |
What am I missing? $ 375,000 Todrick Company Contribution Format Income Statement Sales Variable expenses: Cost...
help plzz Problem 1-19 Traditional and Contribution Format Income Statements (LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $450,000 $ 30,000 $300,000 $ 15,000 $ ? $ 18,000 $ 22,500 $ 90,000 $ 27,000 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format...
Problem 1-19 Traditional and Contribution Format Income Statements (L01-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 210,000 $ 14,000 $ 140,000 7,000 Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income es eses es eses es eses es 8,400 10,500 42,000 12,600 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $ 375,000 $ 25,000 $ 250,000 $ 12,500 ? $ 15,000 $ 18,750 $ $ $ 75,000 22,500 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit....
help plzz Problem 1-19 Traditional and Contribution Format Income Statements (LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $450,000 $ 30,000 $300,000 $ 15,000 $ ? $ 18,000 $ 22,500 $ 90,000 $ 27,000 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format...
Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $ 210,000 $ 14,000 $ 140,000 $ 7,000 $ 8,400 $ 10,500 $ 42,000 $ 12,600 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement....
Problem 1-19 Traditional and Contribution Format Income Statements [LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: > $ 315,000 $ 21,000 $ 210,000 10,500 Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income > us us us us us us us 12,600 15,750 63,000 18,900 Required: 1. Prepare a contribution format income statement. 2. Prepare a...
help plzz Problem 1-19 Traditional and Contribution Format Income Statements (LO1-6] Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales Beginning merchandise inventory Purchases Ending merchandise inventory Fixed selling expense Fixed administrative expense Variable selling expense Variable administrative expense Contribution margin Net operating income $450,000 $ 30,000 $300,000 $ 15,000 $ ? $ 18,000 $ 22,500 $ ? $ 90,000 $ 27,000 Required: 1. Prepare a contribution format income statement. 2. Prepare a...
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