Help Sas Milden Company ls a merchandiser that plans to sell

Help Sas Milden Company ls a merchandiser that plans to sell 41,000 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 Fornula Cost of good sold Advertising expense Sales commissions Shipping expense Administrative salaries Insurance expense Depreciation expense $30 per unit sold 186,000 per quarter 5t of aales $16,000 per quarter5.00 per unit sold 96,000 per quarter $10,600 per quarter $66,000 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. 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. Contribution Format Income Statement Pree 4of4 111 Next 888 4 3 4 5 6 8 9

Solution

Answers

Working

Units

per unit

Total Amount

A

Sales Revenue

41000

59

2419000

B

Variable Costs

Cost of Goods Sold

41000

30

1230000

Sales commission

41000

2.95

120950

Shipping expenses

41000

5

205000

Total Variable costs

41000

37.95

1555950

C=A-B

Contribution Margin

41000

21.05

863050

D

Fixed Expenses

Advertising expenses

186000

Shipping expenses

16000

Administrative expenses

96000

Insurance expenses

10600

Depreciation expenses

66000

Total Fixed Expenses

374600

E=C-D

Net Income

488450

Working

Units

Per unit

Amount

A

Sales revenue

41000

59

2419000

B

Cost of Goods Sold

41000

30

1230000

C=A-B

Gross Profit

41000

29

1189000

D

Other expenses

Advertising expenses

186000

Shipping expenses

221000

Administrative expenses

96000

Insurance expenses

10600

Depreciation expenses

66000

Sales Commission

120950

Total other expenses

700550

E=C-D

Net Income

488450

Working		Units	per unit	Total Amount
A	Sales Revenue	41000	59	2419000
B	Variable Costs
	Cost of Goods Sold	41000	30	1230000
	Sales commission	41000	2.95	120950
	Shipping expenses	41000	5	205000
	Total Variable costs	41000	37.95	1555950
C=A-B	Contribution Margin	41000	21.05	863050
D	Fixed Expenses
	Advertising expenses			186000
	Shipping expenses			16000
	Administrative expenses			96000
	Insurance expenses			10600
	Depreciation expenses			66000
	Total Fixed Expenses			374600
E=C-D	Net Income			488450