FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Can you please help me find the answers to the question marks below:
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:
Sales $ 180,000
Beginning merchandise inventory $ 12,000
Purchases $ 120,000
Ending merchandise inventory $ 6,000
Fixed selling expense $ ?
Fixed administrative expense $ 7,200
Variable selling expense $ 9,000
Variable administrative expense $ ?
Contribution margin $ 36,000
Net operating income $ 10,800
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- Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:Sales$ 420,000Beginning merchandise inventory$ 28,000Purchases$ 280,000Ending merchandise inventory$ 14,000Fixed selling expense?question markFixed administrative expense$ 16,800Variable selling expense$ 21,000Variable administrative expense?question markContribution margin$ 84,000Net operating income$ 25,200Required:Prepare a contribution format income statement.Prepare a traditional format income statement.Calculate the selling price per unit.Calculate the variable cost per unit.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?arrow_forwardPlease do not give solution in image format thankuarrow_forwardPlease help me with show all calculation thankuarrow_forward
- Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. I cannot for the life of me figure out the second portion of this.arrow_forwardCherokee Incorporated is a merchandiser that provided the following information: Amount Number of units sold 10,000 Selling price per unit $ 16 Variable selling expense per unit $2 Variable administrative expense per unit $ 1 Total fixed selling expense $ 19,000 Total fixed administrative expense $ 16,000 Beginning merchandise inventory $ 11,000 Ending merchandise inventory $ 23,000 Merchandise purchases $ 87,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement.arrow_forwardThe following information is available for the past year for a retail store: Sales $121,000 Sales Returns $1,000 Markups $11,000 Markup cancellations $1,000 Markdowns $9,000 Purchases (at cost) $40,000 Purchases (at retail) $90,000 Beginning inventory (at cost) $30,000 Beginning inventory (at retail) $40,000 What is the cost-to-retail ratio to estimate the cost of ending inventory using the conventional retail method? (Round cost-to-retail ratios to four decimal places.) Group of answer choices 53.85% 75% 58.33% 50%arrow_forward
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