AJ Manufacturing Company incurred $$50,500$ of fixed product cost and $$40,400$ of variable product cost during its first year of operation. Also during its first year, AJ incurred $$16,150$ of fixed and $$13,100$ of variable selling and administrative costs. The company sold all of the units it produced for $$162,000.$

Required

a$.$ Prepare an income statement using the format required by generally accepted accounting Principles $($GAAP$).$

b$.$ Prepare an income statement using the contribution margin approach.

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Required B

Prepare an income statement using the format required by generally accepted accounting Principles $($GAAP$).$

AJ MANUFACTURING COMPANY

Income Statement