TJ

CF Industries$$ Holding, Inc. is one of the largest manufacturers and distributors of nitrogen fertilizer and other nitrogen products in the world. The corporation often produces and stores large amounts of inventory during periods of low demand to ensure that there is enough product to meet the demand of peak seasons. Assume that one line of fertilizer$($with no beginning Finished Goods$$ Inventory$)$ had the following data during a time period of low$$ demand: Sales price

$$20$ per case

Variable manufacturing costs

$4$ per case

Fixed manufacturing costs

$100,000$ per quarter

Variable selling and administrative costs

$2$ per case

Fixed selling and administrative costs

$45,000$ per quarter Requirement $1.$ Prepare the income statement for the quarter using variable costing. $($Round any intermediary per unit computations to the nearest$$ cent, and round all amounts you enter into the statement to the nearest whole$$ dollar.$)$

CF Industries Holding, Inc.

Income Statement $($Variable Costing$)$

For the Quarter Ending

Net Sales Revenue

Contribution Margin

Selling and Administrative Costs

Contribution Margin

Operating Income