Danny’s Sporting Goods Co. recorded the following information and would like an income statement prepared using the direct costing (variable costing) approach. There were no beginning inventories of work-in-process or finished goods and no ending inventories of work-in-process.

Production: 550,000 units, of which 450,000 were sold for $32 each. Unit direct materials cost was $8. unit direct labor cost was $8.50, variable manufacturing cost was $1 per unit, and fixed manufacturing cost was $1,500,000. Variable selling and administrative cost was $1.25 per unit sold; fixed selling and administrative cost was $850,000. nmj1 Required:

Prepare an income statement using the direct costing approach.