I do not understand how to do this please help thanks Edit V

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 >

Solution

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