Final answer:
Both the contribution format and traditional format income statements begin with the same sales revenue figure of $2,706,000 for Milden Company, as it plans to sell 41,000 units at $66 per unit. Other specific costs are needed to complete these statements in detail, but based on the answers provided, both formats show the same sales revenue.
Step-by-step explanation:
The subject of this question is business, specifically focused on preparing different types of income statements. According to the provided information, Milden Company is expecting to sell 41,000 units at $66 per unit during the next quarter. To help with the student’s homework, let’s calculate the sales revenue first, which will be 41,000 units multiplied by $66, resulting in a total sales revenue of $2,706,000.
For this example, we are not given specific costs such as variable costs, fixed costs, or any other expenses to accurately prepare a detailed contribution format income statement or a traditional format income statement. However, we can infer from the choices given that these formats should show the same sales revenue figure. The contribution format income statement separates costs into fixed and variable parts and provides contribution margin, whereas the traditional format organizes costs into functional areas like cost of goods sold and gross profit.
To answer the student’s question directly using the possible result options provided, the correct answer is choice b): Contribution format income statement is $2,706,000 and traditional format income statement is $2,706,000, since both statements should start with the same sales revenue figure.