The PC Supply Company manufactures memory cards that sell to wholesalers for $2.00 each. Variable and fixed costs are as follows: Variable Costs per card:

Manufacturing Direct materials $0.30 Direct labor 0.25 Factory overhead 0.25 Total: 0.80

Selling and admin. 0.15 Total $0.95

Fixed Costs per Month:

Factory overhead $4,000

Selling and admin. 3,000

Total $7,000 PC Supply produced and sold 10,000 cards during October 2012. There were no beginning or ending inventories. Required: a. Prepare a contribution income statement for the month of October. b. Determine PC Supply