Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:
| Sales | $ | 360,000 |
| Beginning merchandise inventory | $ | 24,000 |
| Purchases | $ | 240,000 |
| Ending merchandise inventory | $ | 12,000 |
| Fixed selling expense | $ | ? |
| Fixed administrative expense | $ | 14,400 |
| Variable selling expense | $ | 18,000 |
| Variable administrative expense | $ | ? |
| Contribution margin | $ | 72,000 |
| Net operating income | $ | 21,600 |
Required:
1. Prepare a contribution format income statement.
2. Prepare a traditional format income statement.
3. Calculate the selling price per unit.
4. Calculate the variable cost per unit.
5. Calculate the contribution margin per unit.
6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales?
Homework Answers
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Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
465,000
Beginning merchandise inventory
$
31,000
Purchases
$
310,000
Ending merchandise inventory
$
15,500
Fixed selling expense
$
?
Fixed administrative expense
$
18,600
Variable selling expense
$
23,250
Variable administrative expense
$
?
Contribution margin
$
93,000
Net operating income
$
27,900
Prepare a contribution format income statement.
Prepare a traditional format income statement.
Calculate the selling price per unit, the variable...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 210,000 $ 14,000 $ 140,000 $ 7,000 Մ 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 Մ 8,400 10,500 Մ Մ Մ 42,000 12,600 ՄՌ Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit....
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 315,000 Beginning merchandise inventory $ 21,000 Purchases $ 210,000 Ending merchandise inventory $ 10,500 Fixed selling expense $ ? Fixed administrative expense $ 12,600 Variable selling expense $ 15,750 Variable administrative expense $ ? Contribution margin $ 63,000 Net operating income $ 18,900 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: A...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: A $ $ $ $ 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 240,000 16,000 160,000 8,000 ? 9,600 12,000 A $ $ A A $ $ 48,000 14,400 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales 330,000 Beginning merchandise inventory 22,000 purchases 220,000 Ending merchandise inventory 11,000 Fixed administrative expense ? Fixed administrative expense 13,200 Variable selling expense 16,500 Variable administrative expense ? Contribution margin 66,000 Net operating Income 19,800 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit. 4. Calculate the variable cost per unit. 5. Calculate...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 210,000 Beginning merchandise inventory $ 14,000 Purchases $ 140,000 Ending merchandise inventory $ 7,000 Fixed selling expense $ ? Fixed administrative expense $ 8,400 Variable selling expense $ 10,500 Variable administrative expense $ ? Contribution margin $ 42,000 Net operating income $ 12,600 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 390,000 Beginning merchandise inventory $ 26,000 Purchases $ 260,000 Ending merchandise inventory $ 13,000 Fixed selling expense $ ? Fixed administrative expense $ 15,600 Variable selling expense $ 19,500 Variable administrative expense $ ? Contribution margin $ 78,000 Net operating income $ 23,400 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
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 is as it is as it is esse $ 180,000 $ 12,000 $ 120,000 6,000 ? 7,200 9,000 ? 36,000 10,800 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
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 $ 405,000 $ 27,000 $ 270,000 $ 13,500 $ ? $ 16,200 $ 20,250 $ ? $ 81,000 $ 24,300 Required: 1. Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the selling price...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales...
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....
Todrick Company is a merchandiser that reported the following
information based on 1,000 units sold:
Sales
$
465,000
Beginning merchandise inventory
$
31,000
Purchases
$
310,000
Ending merchandise inventory
$
15,500
Fixed selling expense
$
?
Fixed administrative expense
$
18,600
Variable selling expense
$
23,250
Variable administrative expense
$
?
Contribution margin
$
93,000
Net operating income
$
27,900
Prepare a contribution format income statement.
Prepare a traditional format income statement.
Calculate the selling price per unit, the variable...
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: $ 210,000 $ 14,000 $ 140,000 $ 7,000 Մ 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 Մ 8,400 10,500 Մ Մ Մ 42,000 12,600 ՄՌ Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling price per unit....
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: A $ $ $ $ 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 240,000 16,000 160,000 8,000 ? 9,600 12,000 A $ $ A A $ $ 48,000 14,400 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling...
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 is as it is as it is esse $ 180,000 $ 12,000 $ 120,000 6,000 ? 7,200 9,000 ? 36,000 10,800 Required: 1. Prepare a contribution format income statement. 2. Prepare a traditional format income statement. 3. Calculate the selling...
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 $ 405,000 $ 27,000 $ 270,000 $ 13,500 $ ? $ 16,200 $ 20,250 $ ? $ 81,000 $ 24,300 Required: 1. Prepare a contribution format income statement 2. Prepare a traditional format income statement 3. Calculate the selling price...
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....
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