Question

Chapter 01 Pre-Built Problems 4 Milden Company is a merchandiser that plans to sell 39,000 units during the next quarter at a selling price of $55 per unit. The company also gathered the following cost estimates for the next quarter: Doint cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries T rance expense Depreciation expense Cost Formula $28 per unit Bold $185,000 per quarter 68 of sales $51,000 per quarter + $4.00 per unit sold $95,000 per quarter $10.500 per quarter $65,000 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. Print References Complete this question by entering your answers in the tabs below. Required: Required 2 Prepare a contribution format income statement for the next quarter. Milden Company Contribution Format Income Statement For the Next Quarter Variable expenses: Total anable expenses

Answer 1

Administrative salaries Insurance expense - Depreciation expense Answer: Hilden company contribution format income statement for next acast particulars Amount Amount $2,145000 sales [39000 x $55] Less- Variable expenses :- cost of goods sold (39000x $28] $1092,000 sales commission 12,145,000 x67] $128,700 capense 139000 *$4] $156,000 1376,700)| : contribution margin $768,300 Les:- Fixed expenses Advertising expense $185,000 shipping capenses $51,000 $95,000 $10,500 $65,000 $406,500) Net Income $361800 2) Milden company Traditional format Income statement for the next Quarter. particulars Amount Amount sales 39.000 * $55] $2,145,000 Less: cost of goods sold [39000x$28] $1092,000 Gross profit $1,053,000 Less' operaling expenses! $185,000 Sales commission {2145,000 x673 $128,700 $207000 alive en penseger) Salaries $95,000 10,500 $65.000 $691200) Net Income $361,800 Advertising expenses shipping expense 39000 x44651,000] Administralive eu pensesor salari Insurance expenses Depreciation