Wippert Corporation, a merchandising company, reported the following results for December:
Required:a. Prepare a traditional format income statement for December.b. Prepare a contribution format income statement for December.

Traditional Format Income Statement

A financial statement format that separates operating activities from non-operating activities to reveal gross profit, operating income, and net income.

Contribution Format Income Statement

An income statement format that separates variable and fixed costs, making it easier to see the contribution margin.