7

Fanelli Corporation, a merchandising company, reported the following results for July:

Number of units sold		6,300
Selling price per unit	$	610
Unit cost of goods sold	$	415
Variable selling expense per unit	$	54
Total fixed selling expense	$	125,800
Variable administrative expense per unit	$	32
Total fixed administrative expense	$	207,700

Cost of goods sold is a variable cost in this company.

Required:

a. Prepare a traditional format income statement for July.

b. Prepare a contribution format income statement for July.