Reference no: EM132473315

Number of units sold                               11,000

Selling price per unit                                  5 17

Variable selling expense per unit                       $ 1

Variable administrative expense per unit               5 3

Total fixed selling expense                            $ 21,000

1 Total fixed administrative expense                 $ 15,000

pmnm Beginning merchandise inventory              $ 8,000

Ending merchandise inventory                         5 25,000

Merchandise purchases                                  $ 86,000

Required:

Question 1. Prepare a traditional income statement.

Question 2. Prepare a contribution format income statement