Alumacraft Manufacturing makes aluminum serving carts for use in commercial jetliners.

During 2005, the following costs were incurred:

Required: Prepare a contribution income statement for the year ended December 31, 2005.

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Percent Percent Amount Fixed Variable Direct material $2,600,000 100 Direct labor 1,820,000 100 Variable manufacturing overhead 540,000 100 Fixed manufacturing overhead 1,900,000 100 Selling cost 380,000 15 Administrative cost 230,000 5 118188 85 95 Sales for 2005 totaled $7,900,000 and there were no beginning or ending inventories.