The following data apply to Gordon Company for 2000 Sales revenue ( 10 units at $\$ 25$ each) . . $\$ 250$

Variable selling expenses . . . . . . . . . . 45 Variable administrative expenses . . . . . 25 Fixed selling expenses . . . . . . . . . . . . 30 Fixed administrative expenses . . . . . . . 15 Direct labor . . . . . . . . . . . . . . . . . . 50 Direct materials . . . . . . . . . . . . . . . 60 Fixed manufacturing overhead. . . . . . 5 Variable manufacturing overhead. . . . . 3 1. Prepare a contribution margin income statement. Assume there were no beginning or ending inventories in 2000.

2. How much would Gordon Company have lost if only five units had been sold during 2000?