O'Hara's Products manufactures a single product. Cost, sales, and production information for the company and its single product is as follows:

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Read the requirements.

Requirement $1.$ Prepare an income statement for the upcoming year using variable costing.

O'Hara's Products

Contribution Margin Income Statement $($Variable Costing$)$

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For the Year Ended December $31$

Sales revenue

Selling price per unit is $$67$

Less: Variable expenses

Variable manufacturing costs per unit manufactured $($includes direct

Variable cost of goods sold

Variable operating expenses

Contribution margin

Less: Fixed expenses

Fixed manufacturing overhead

Fixed operating expenses

Operating income

materials $[$DM$],$ direct labor $[$DL$],$ and variable MOH$)$ $$38$

Variable operating expenses per unit sold $$1$

Fixed manufacturing overhead $(MOH)$ in total for the year $$80,000$

Fixed operating expenses in total for the year $$93,000$

Units manufactured and sold for the year $8,000$ units