Income Statement
For the Three Months Ending September 30th
	July	August	September
Sales in Units	4,500	5,000	6,000
Sales Revenue	$675,000	$750,000	$900,000
Cost of Goods Sold	275,000	300,000	350,000
Gross Margin	400,000	450,000	550,000
Operating Expenses:
Advertising expense	11,000	11,000	11,000
Shipping expense	27,000	30,000	36,000
Salaries and commissions	127,500	135,000	150,000
Legal expense	7,000	7,000	7,000
Depreciation expense	10,000	10,000	10,000
Total Operating Expense	182,500	193,000	214,000
Operating Income	$217,500	$257,000	$336,000

They will expect to sell 6,500 units in october, prepare an absorption income statement for october, prepare a contribution margin income statement based on october sales of 6500 units. do not combine expenses but show each expense seperately in the appropriate category.