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Question: Milden Company is a merchandiser that plans


Milden Company is a merchandiser that plans to sell 12,000 units during the next quarter at a selling price of $100 per unit. The company also gathered the following cost estimates for the next quarter:
Cost Cost Formula
Cost of goods sold …………………………………………………...............$35 per unit sold
Advertising expense …………………………………………...........$210,000 per quarter
Sales commissions ...............................................................................6% of sales
Shipping expense ………………............$28,000 per quarter + $9.10 per unit sold
Administrative salaries ………………………………………..........$145,000 per quarter
Insurance expense ………………………………………………............$9,000 per quarter
Depreciation expense …………………………………………..........$76,000 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.



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