Paradise Manufacturing makes weight-lifting equipment. During 2004, the following costs were incurred:

Required: Prepare a contribution income statement for the year ended December 31, 2004.

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Percentage Percentage Amount Fixed Variable Direct material $680,000 100 Direct labor 420,000 100 Variable manufacturing overhead 130,000 Fixed manufacturing overhead 900,000 100 Selling cost 300,000 Administrative cost 220,000 1882 100 - 20 10 880 90 Sales for 2004 totaled $2,780,000 and there were no beginning or ending inventories.