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 4. Calculate the variable cost per unit.5. Calculate the contribution margin per unit.6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales?

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...

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

4. Calculate the variable cost per unit.

5. Calculate the contribution margin per unit.

6. Which income statement format (traditional format or contribution format) would be more useful to managers in estimating how net operating income will change in responses to changes in unit sales?

Jun 02, 2022

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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...

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