Question $5$

Pharoah Company builds custom fishing lures for sporting goods stores. In its first year of operations, $2025,$ the company incurred the following costs.

Pharoah Company sells the fishing lures for $$33\mathrm{.}50.$ During $2025,$ the company sold $81,000$ lures and produced $93,000$ lures.

$($b$)$

Prepare a variable costing income statement for $2025.($Enter negative amounts using either a negative sign preceding the number e$.$g$.$

$-45$ or parentheses e$.$g$.(45).)$

PHAROAH COMPANY

Income Statement

Variable Costing

Sales

$

Variable Cost of Goods Sold

$

Variable Selling and Administrative Expenses

Contribution Margin

Fixed Manufacturing Overhead

Fixed Selling and Administrative Expenses