S6-14 Prepare a contribution margin income statement (Learning Objective 6)

D&F is a distributor of fruit juice. In June, D&F recorded sales of 18,000 bottles of fruit juice at the price of $16 each. The company bought the fruit juice for $8 per bottle. The distributor’s salesperson receives commission of 20% of total sales without any basic salary.

However, the salesperson is given a fixed petrol allowance of $1,000 per month.

The distributor also pays rent costing $2,000, and $5,000 is the salary for two account clerks each month. Prepare D&F’s contribution margin income statement for the month.