Coverall Inc. produces and sells a unique type of case for astandard-size tablet computer that is guaranteed waterproof butstill allows for regular functionality of the tablet. The companyhas just opened a new plant to manufacture these cases, and thefollowing cost and revenue data have been provided for the firstmonth of the plant’s operation in the form of a worksheet:
| | | | |
| Beginning inventory | | 0 | |
| Units produced | | 20,000 | |
| Units sold | | 15,000 | |
| Selling price per unit | $ | 80 | |
| | | | |
| Selling and administrative expenses: | | | |
| Variable per unit | $ | 6 | |
| Fixed (total) | $ | 475,000 | |
| Manufacturing costs: | | | |
| Direct materials cost perunit | $ | 12 | |
| Direct labour cost per unit | $ | 9 | |
| Variable manufacturing overheadcost per unit | $ | 5 | |
| Fixed manufacturing overhead cost(total) | $ | 600,000 | |
|
Since the new case is unique in design, management is anxious tosee how profitable it will be and has asked that an incomestatement be prepared for the month.
Prepare a contribution format income statement for the month.(Do not leave any empty spaces; input a 0 wherever it isrequired.)
