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

Number of units sold		5,400
Selling price per unit	$	590
Unit cost of goods sold	$	406
Variable selling expense per unit	$	58
Total fixed selling expense	$	124,900
Variable administrative expense per unit	$	28
Total fixed administrative expense	$	206,800

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.

Fanelli Corporation
For the month of July
Traditional Income Statement
Sales		$3,186,000
Cost of goods sold		2,192,400
Gross margin		993,600
Selling and administrative expenses:
Administrative expense
Selling expense
Administrative expense
Selling expense		0
Net operating income		$993,600

Prepare a contribution format income statement for July.

Fanelli Corporation
For the month of July
Contribution Format Income Statement
Variable expenses:
		0
		0
Fixed expenses:
		0
		$0