The Riley company uses variable costing. There are no beginning or ending inventories You are provided with the following data for the year end December 31, 2010:

Sales $900,000 Direct Materials $300,000 Direct Labour $200,000 Variable Indirect Manufacturing Costs $100,000 Fixed Selling and Admin Expenses $75,000 A) Prepare a contribution income statement in good form.

B) What are the Prime Costs?

C) What are the Conversion Costs?