Problem 1. Square Firm makes and markets triangles. The firms cost structure is as follows:

Manufacturing cost = $6.75 per unit + $88,400 per month.

Selling and administrative cost = $3.25 per unit + $39,500 per month

At the end of October, the firm has 2,300 units in inventory with a total cost of $15,525. During November, the firm produced 8,000 units and sold 6,000. The selling price is $32.40 per unit.

Assume the firm uses variable costing. Prepare an income statement for the month of November.