Brice Publications, Inc Required:
A

Brice Publications, Inc. produces and sells business books. The results of the company's operations for the year ended December 31, 20x1, are given below. $\begin{array}{lr}\text { Sales revenue } & \$ 400,000 \\\text { Cost of goods sold (manufacturing costs): } & \\\quad \text { Fixed } & 100,000 \\\quad \text { Variable } & 200,000 \\\text { Selling costs: } & \\\quad \text { Fixed } & 10,000 \\\quad \text { Variable } & 20,000 \\\text { Administrative costs: } & \\\quad \text { Fixed } & 24,000 \\\quad \text { Variable } & 6,000\end{array}$
Required:
A. Prepare a traditional income statement for the company.
B. Prepare a contribution income statement for the company.
C. Which income statement (traditional or contribution) would an operating manager most likely use to study changes in operating income that are caused by changes in sales? Why?