High Country, Incorporated, 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	45,000
Units sold	40,000
Selling price per unit	$ 78
Selling and administrative expenses:
Variable per unit	$ 4
Fixed (per month)	$ 570,000
Manufacturing costs:
Direct materials cost per unit	$ 16
Direct labor cost per unit	$ 8
Variable manufacturing overhead cost per unit	$ 1
Fixed manufacturing overhead cost (per month)	$ 765,000

Management is anxious to assess the profitability of the new camp cot during the month of May.

2. Assume that the company uses variable costing. Prepare a contribution format income statement for May.