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28 Sep 2019
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:
Sales $ 270,000 Beginning merchandise inventory $ 18,000 Purchases $ 180,000 Ending merchandise inventory $ 9,000 Fixed selling expense $ ? Fixed administrative expense $ 10,800 Variable selling expense $ 13,500 Variable administrative expense $ ? Contribution margin $ 54,000 Net operating income $ 16,200
2. Prepare a traditional format income statement.
Todrick Company Traditional Income Statement Sales Cost of goods sold Gross margin 0 Selling and administrative expenses: Selling expense Administrative expense 0 Net operating income
Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:
Sales | $ | 270,000 |
Beginning merchandise inventory | $ | 18,000 |
Purchases | $ | 180,000 |
Ending merchandise inventory | $ | 9,000 |
Fixed selling expense | $ | ? |
Fixed administrative expense | $ | 10,800 |
Variable selling expense | $ | 13,500 |
Variable administrative expense | $ | ? |
Contribution margin | $ | 54,000 |
Net operating income | $ | 16,200 |
2. Prepare a traditional format income statement.
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Beverley SmithLv2
28 Sep 2019