Full Capacity Corporation has been producing and selling 200,000 units of a product per year. The following budget was prepared for the next year:

Selling price per unit $25.00

Variable cost per unit:

Direct materials $10.00

Direct labor 8.00

Variable Overhead 1.50

Variable Selling and administrative costs 0.50

Total Fixed costs:

Overhead $160,000

Selling and administrative $70,000

Prepare an income statement using the contribution margin approach.