The most recent monthly contribution format income statement for Reston Company is given below:

Reston Company Income Statement For the Month Ended May 31
Sales	$	900,000	100.0	%
Variable expenses		300,000	33.3
Contribution margin		600,000	66.7
Fixed expenses		495,000	55.0
Net operating income	$	105,000	11.7	%

Management is disappointed with the company