Bryant, Ltd. is a local coat retailer. The store’s accountant prepared the following income statement for the month ended  January 31:

Sales revenue                                                                     $788,000 

Cost of goods sold                                                             366,500 

Gross margin                                                                      421,500 

Less operating expenses Selling expense     $23,990 

Administrative expense                                    50,010      74,000 

Net operating income                                                      $347,500 

Bryant sells its coats for $250 each Selling expenses consist of fixed costs plus a commission of $6.50 per coat. Administrative expenses consist of fixed costs plus a variable component equal to 5% of sales.

Required

a. Prepare a contribution format income statement for January.

b. Using the format y = mx + b, develop a cost formula for total expenses.

c. If 4,000 coats are sold next month, what is the expected total contribution margin?