Lauren Running is a specialty fitness store, whose best product is the CherryTrack, a fitness tracker smartwatch. In July, the company sold 50 CherryTracks at $400 per unit

• The cost to make each CherryTrack is 50% of the retail price.
• The company employs a watch "influencer" (advertising product) who receives $1,000 per month, plus 2% of the sales price for each watch sold.
• The company employs a salesperson, who receives 6% of the sales price for each watch sold.
• The company employs a specialist for $4,000 each month who performs repairs on the devices.
• The company pays $3,000 each month to rent its retail space and equipment.

When completing the requirements below, list all descriptions in the first column and amounts in the second column. For the descriptions, use the following answer legend (just put the letter that corresponds with the description - do not type out the full description in your answer). Please include the appropriate dollar sign and commas (e.g. $25,000).

1. Sunk Cost
2. Variable Cost
3. Mixed Cost
4. Contribution Margin
5. Gross Profit
6. Cost of Goods Sold
7. Fixed Costs
8. Product Profits
9. Period Cost
10. Product Cost
11. Operating Expenses
12. Step Costs

Prepare TRADITIONAL INCOME STATEMENT for the month

DESCRIPTIONAMOUNTSales$20,000Operating Income B: Prepare CONTRIBUTION MARGIN INCOME STATEMENT for the month

DESCRIPTIONAMOUNTSales$20,000Operating Income