odrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales$300,000Beginning merchandise inventory$20,000Purchases$200,000Ending merchandise inventory$7,000Fixed selling expense$?Fixed administrative expense$12,000Variable selling expense$15,000Variable administrative expense$?Contribution margin$60,000Net operating income$18,000 Required:1. Prepare a contribution format income statement.2. Prepare a traditional format income statement.

A contribution margin is calculated by subtracting a company's variable expenses from its sales in a…

Answered: Sales $ 300,000 Beginning merchandise…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 58P: Cost of Goods Manufactured, Income Statement W. W. Phillips Company produced 4,000 leather recliners...

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odrick Company is a merchandiser that reported the following information based on 1,000 units sold:


Sales	$	300,000
Beginning merchandise inventory	$	20,000
Purchases	$	200,000
Ending merchandise inventory	$	7,000
Fixed selling expense	$	?
Fixed administrative expense	$	12,000
Variable selling expense	$	15,000
Variable administrative expense	$	?
Contribution margin	$	60,000
Net operating income	$	18,000

Required:

1. Prepare a contribution format income statement.

2. Prepare a traditional format income statement.

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