Assume that you are part of the accounting team for Sutcliffe Productions. The company has only one product that sells for $40 per unit. Sutcliffe estimates total fixed costs to be $9,000. Sutcliffe estimates direct materials cost of $8.00 per unit, direct labor costs of $10.00 per unit, and variable overhead costs of $2.00 per unit. The CEO would like to see what the gross margin and operating income will be if 700 units are sold in the next period. Contribution margin income statement.

Sutcliffe Productions Contribution Margin Income Statement

Sales$ 28,000

Less: Variable costs 14,000

Contribution margin jQuery22407878628196399668_1606647918181? unsure

Less: Fixed costs??? unsure

Operating income$ ???? unsure