Preparing the contribution income statement

Question

Task: The following information is available for Nicole’s Toy Manufacturing Company for 2004:

                                                                                               Percent                    Percent

                                                                       Amount              Fixed                       Variable

Direct material                                                 $440,000               -                             100

Direct labor                                                        90,000               -                             100

Variable manufacturing overhead                         70,000               -                             100

Fixed manufacturing overhead                            800,000             100                            -

Selling cost                                                       950,000               45                            55

Administrative cost                                            570,000               85                            15

Sales for 2004 totaled $3,164,000 and there were no beginning or ending inventories.

Required: Prepare a contribution income statement for the year ended December 31, 2004.