Answer:
1)The contribution format income statement for the next quarter is the following way:
Milden company | ||
Contribution margin income statement | ||
For the next quarter | ||
Particulars | Amount | Amount |
Sales |
= total sale of units*selling price per unit =39,000*65 = 25,35,000 |
$25,35,000 |
Less variable Expenses: | ||
variable cost of goods sold(39,000*32) | $12,48,000 | |
Variable selling expenses(39,000*4) | $1,56,000 | |
Variable selling commission(25,35,000*5/100) | $1,26,750 | |
Total variable Expenses | $15,30,750 | |
Contribution margin(sales-total variable costs)(25,35,000-15,30,750) | $10,04,250 | |
Less Fixed Expenses : | ||
Advertising Expenses | $1,88,000 | |
Shipping expense | $42,000 | |
Administrative expense | $98,000 | |
Insurance expenses | $10,800 | |
Depreciation expense | $68,000 | |
Total Fixed Expenses | $4,06,800 | |
Net income (contribution margin -total fixed expenses)(10,04,250-4,06,800) | $5,97,450 |
2)The Traditional format income statement for the next quarter is the following way:
Milden company | ||
Traditional Format income statement | ||
For the next quarter | ||
Particulars | Amount | Amount |
Sales |
= total sale of units*selling price per unit =39,000*65 = 25,35,000 |
$25,35,000 |
Cost of goods sold(39,000*32) | $12,48,000 | |
Gross margin | $12,87,000 | |
Selling and administrative expenses: | ||
Advertising Expenses | $1,88,000 | |
Shipping expense(42,000+selling expenses[39,000*4]) | $1,98,000 | |
Administrative expense | $98,000 | |
Insurance expenses | $10,800 | |
Depreciation expense | $68,000 | |
sales commission(25,35,000*5/100) | $1,26,750 | |
Total selling and administrative expenses | $6,89,550 | |
Net operating income(gross margin-Total selling and administrative expenses) |
=12,87,000-6,89,550 =5,97,450 |
$5,97,450 |
helppp plzz Problem 1-25 Traditional and Contribution Format Income Statements (LO1-6] Milden Company is a merchandiser...
Problem 1-25 Traditional and Contribution Format Income Statements (LO1-6) Milden Company is a merchandiser that plans to sell 39,000 units during the next quarter at a selling price of $65 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 $32 per unit sold $188,000 per quarter 5% of sales $42,000 per quarter + $4.00 per unit...
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Problem 1-25 Traditional and Contribution Format Income Statements (L01-6) Milden Company is a merchandiser that plans to sell 37,000 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: Cost Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense Cost Formula $27 per unit sold $184,000 per quarter 5% of sales $24,000 per quarter +...
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...
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...
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...
Check my work View previol Milden Company Contribution Format Income Statement For the Next Quarter points Variable expenses: (8 02:48:57 eBook Print References Total variable expenses Contribution margin Fixed expenses Total fixed expenses Problem 1-25 Traditional and Contribution Format Income Statements (LO1-6] Milden Company is a merchandiser that plans to sell 23,000 units during the next quarter at a selling price of $51 per un company also gathered the following cost estimates for the next quarter: 2 points (8 02:49:46...
Milden Company is a merchandiser that plans to sell 33,000 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:
Cost
Cost Formula
Cost of good sold
$25 per unit sold
Advertising expense
$182,000 per quarter
Sales commissions
5% of sales
Shipping expense
$32,000 per quarter + $5.00 per unit sold
Administrative salaries
$92,000 per quarter
Insurance expense
$10,200 per quarter
Depreciation expense
$62,000 per...
Milden Company is a merchandiser that plans to sell 33,000 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: Cost Cost Formula Cost of good sold $25 per unit sold Advertising expense $182,000 per quarter Sales commissions 5% of sales Shipping expense $32,000 per quarter + $5.00 per unit sold Administrative salaries $92,000 per quarter Insurance expense $10,200 per quarter Depreciation expense $62,000 per...
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....
Milden Company is a merchandiser that plans to sell 27,000 units during the next quarter at a selling price of $53 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 $23 per unit sold $173,000 per quarter 6% of sales $68,eee per quarter + $5.00 per unit sold $83,000 per quarter $9,300 per quarter $53,000 per...