Contribution Income Statement and Cost-Volume-Profit Graph

Kopi Company produces dog cages that are sold for $38 per unit. The company produced and sold 5,000 dog cages during July 2017. There were no beginning or ending inventories. Variable and fixed costs follow.

Variable Costs per UnitFixed Costs per MonthManufacturing:Manufacturing overhead$35,000Direct materials$10Selling and administrative15,000Direct labor2Total$50,000Manufacturing overhead5$17Selling and administrative5Total$22

Required

Prepare contribution income statement for July.

Do not use any negative signs with your answers.

Kopi CompanyContribution Income StatementFor the Month of July 2017SalesLess variable costsDirect materialsDirect laborManufacturing overheadSelling and administrativeContribution marginLess fixed cost:Manufacturing overheadSelling and administrativeProfit

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