Prepare a contribution format income statement

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Problem

Sales $ 180,000 Beginning merchandise inventory $ 12,000 Purchases $ 120,000 Ending merchandise inventory $ 6,000 Fixed selling expense ?question mark Fixed administrative expense $ 7,200 Variable selling expense $ 9,000 Variable administrative expense ?question mark Contribution margin $ 36,000 Net operating income $ 10,800 Required: Prepare a contribution format income statement. Prepare a traditional format income statement. Calculate the selling price per unit. Calculate the variable cost per unit. Get the instant assignment help. Calculate the contribution margin per unit. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in response to changes in unit sales?

Reference no: EM133920136

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