I do not understand how to do this. please help thanks Edit View History Bookmar

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I do not understand how to do this. please help
thanks

Edit View History Bookmarks Window Help newconnect.mheducation.com Connect Milden Company Is A Merchandiser That Plans To Sel... Chegg.com Milden is A Mer ter 01 Hand in Problems Saved He Milden Company is a merchandiser that plans to sell 33,000 units during the next quarter at a selling price of $59 per unit. The company also gathered the following cost estimates for the next quarter Cost Formula Cost Cost of good sold Advertising expense sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $29 per unit sold $179,000 per quarter 6 of sales $19,000 per quarter $6.00 per unit sold 89,000 per quarter $9,900 per quarter $59,000 per quarter ped ok Required 1. Prepare a contribution format income statement for the next quarter 2. Prepare a traditional format income statement for the next quarter Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare a contribution format income statement for the next quarter Milden Company Contribution Format Income Statement For the Next Quarter S 1,947,000 Sales Variable expenses 957,000 Cost of goods sold Calae remmiceinn K Prev3 of 4 Next >

Explanation / Answer

Part 1

Contribution format income statement

1947000

(33000*59)

Part 2

Traditional format income statement

1947000

(33000*59)

319280

Sales

1947000

(33000*59)

Variable expenses : Cost of goods sold (33000*29) 957000 Sales commission (1947000*6%) 116820 Shipping expense (33000*6) 198000 Total variable expenses 1271820 Contribution margin 675180 Fixed expenses : Advertising expense 179000 Shipping expense 19000 Administrative Salaries 89000 Insurance expense 9900 Depreciation expense 59000 Total fixed expenses 355900 Net operating income 319280

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