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In: Accounting

Milden Company is a merchandiser that plans to sell 27,000 units during the next quarter at...

Milden Company is a merchandiser that plans to sell 27,000 units during the next quarter at a selling price of $53 per unit. The company also gathered the following cost estimates for the next quarter:

Cost Cost Formula
Cost of good sold $23 per unit sold
Advertising expense $173,000 per quarter
Sales commissions 6% of sales
Shipping expense $68,000 per quarter + $5.00 per unit sold
Administrative salaries $83,000 per quarter
Insurance expense $9,300 per quarter
Depreciation expense $53,000 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.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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