Sandys Socks makes the worlds best socks. Sandy performed a least-squares regression of the information for the last eight months and obtained the following results.

Month

Number of Socks Produced

Total Cost

January

1,800

9,000

February

4,890

15,648

March

2,300

10,350

April

3,250

11,375

May

4,300

13,845

June

2,800

11,200

July

5,600

16,410

August

4,500

14,400

Sandy performed a least-squares regression and obtained the following results.

Coefficients

Intercept

5,514.22

X Variable 1

1.97

Suppose that Sandys expects to sell 3,200 socks during the month of September and that each sock sells for $3.00. Complete Sandys contribution margin income statement for the month of September.

SANDYS SOCKS
Contribution Margin Income Statement
Month of September
Contribution Margin
Net Operating Income