A manufacturing business operates at 100% of its capacity during its first month of operations and incurs the following costs:

Production costs (10,000) units:

Direct Materials: $140,000

Direct Labor: 40,000

Variable factory overhead: 20,000

Fixed factory overhead: 4,000 $204,000

Operating expenses:

Variable operating expenses: $ 34,000

Fixed operating expenses 2,000

At the end of the month the company has 2,000 units unsold. Unit selling prices are $30.

How do I prepare income statement using the contribution approach.

How do I determine operating income using traditional costing.