Fanelli Corporation, a merchandising company, reported the following results for July:

Number of units sold5,500Selling price per unit$600Unit cost of goods sold$407Variable selling expense per unit$60Total fixed selling expense$125,000Variable administrative expense per unit$30Total fixed administrative expense$206,900

Cost of goods sold is a variable cost in this company.

Required:

a. Prepare a traditional format income statement for July.

b. Prepare a contribution format income statement for July.