Kopi Company produces dog cages that are sold for $30 per unit. The company produced and sold 8,200 dog cages during July 2017. There were no beginning or ending inventories. Variable and fixed costs follow.

Variable Costs per Unit

Fixed Costs per Month

Manufacturing:

Manufacturing overhead $30,000

Direct materials $10

Selling and administrative 12,000

Direct labor 2

Total$42,000

Manufacturing overhead 5 $17

Selling and administrative 5

Total$22

Prepare a contribution income statement for July.

Sales

Less variable costs

Direct materials

Direct labor

Manufacturing overhead

Selling and administrative

Contribution margin

Less fixed cost: Manufacturing overhead

Selling and administrative

Profit =