Denise Young, an accountant for Chiles Corporation, has been asked to prepare an income statement that reports contribution margin. Miss Young has asked you to prepare an analysis of three months’ costs. Provide Miss Young with an analysis of these data that include the unit cost of variable costs and monthly costs of fixed costs. Explain to Miss Young how you prepared your analysis.

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May June July Unit Sales 400 500 600 Cost of Merchandise Sold $8,000.00 $10,000.00 $12,000.00 Advertising Expense 2,300.00 2,300.00 2,300.00 Depreciation Expense 1,000.00 1,000.00 1,000.00 Payroll Taxes Expense Rent Expense Salary Expense Supplies Expense Utilities Expense 640.00 800.00 960.00 2,000.00 2,000.00 2,000.00 3,200.00 4,000.00 4,800.00 1,200.00 1,200.00 1,200.00 600.00 750.00 900.00