Fanelli Corporation, a merchandising company, reported the following results for July:
Number of units sold 6,000 Selling price per unit $ 610 Unit cost of goods sold $ 412 Variable selling expense per unit 70 Total fixed selling expense $125,500 Variable administrative expense per unit 26 Total fixed administrative expense $207,400
Cost of goods sold is a variable cost in this company.
Required: a. Prepare a traditional format income statement for July. b. Prepare a contribution format income statement for July.