High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plants operation:

Beginning inventory		0
Units produced		38,000
Units sold		33,000
Selling price per unit		$81
Selling and administrative expenses:
Variable per unit		$3
Fixed per month	$	567,000
Manufacturing costs:
Direct materials cost per unit		$14
Direct labor cost per unit		$10
Variable manufacturing overhead cost per unit		$1
Fixed manufacturing overhead cost per month	$	646,000

Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May.

High Country, Inc.Absorption Costing Income StatementSales$2,673,000Cost of goods soldGross margin2,673,000Selling and administrative expensesNet operating income$2,673,000

b.	Prepare a contribution format income statement for May.