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McGillCorporationhasprovidedthefollowingforthreemonthsofincomestatements: July August September Salesin Units 500 1000 800 Sales 250,000 500,000 400,000 Less: cost ofgoodssold 125,000 250,000 200,000 Grossmargin 125,000 250,000 200,000 Operatingexpenses: Advertising

McGillCorporationhasprovidedthefollowingforthreemonthsofincomestatements:

July August

September

Salesin Units

500 1000

800

Sales

250,000 500,000

400,000

Less: cost ofgoodssold

125,000 250,000

200,000

Grossmargin

125,000 250,000

200,000

Operatingexpenses:

Advertising

5,000 5,000

5,000

Salaries&Commissions

72,500 85,000

80,000

Depreciationexpense

10,000 10,000

10,000

Utilitiesexpense

12,000 17,000

15,000

Total operatingexpenses

99,500 117,000

110,000

NetIncome

25,500 133,000

90,000

Required:

Assumethecompanyplansto sell900unitsnextmonth,prepareacontributionmarginincomestatement.

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