3. Beach Motors Inc. assembles & sells Dune buggy engines. The company began operations on July 1, 2010 and operated at 100% of the capacity during the first month. The following data summarize the results for July- Sales (30,000 units) $900,000 Production costs: Direct materials, beginning bal $90,000 Direct materials, ending bal 120,000 Purchase of raw materials 200,000 Fixed selling expenses Variable selling expenses Variable administrative expenses Fixed administrative expenses Prepare an income statement according to contribution margin format. Find out net income. (Net income: $265,000) 60,000 130,000 50,000 225,000