Exercise 2-17 (Part Level Submission)

Mary Smith sells gourmet chocolate chip cookies. The results of her last month of operations are as follows:

Sales revenue

$

50,000

Cost of goods sold (all variable)

25,575

Gross margin

24,425

Selling expenses (20% variable)

8,000

Administrative expenses (60% variable)

12,000

Operating income

$

4,425

(a)

Prepare a contribution format income statement for Mary.(Round answers to 0 decimal places, e.g. 5,250.)