5. For each cost in case Exhibit 3, indicate whether the cost is a manufacturing or nonmanufacturing cost.

6. Assume the company expects to produce and sell 1,500 units during the following month at a price of $100 per unit. Prepare a traditional income statement that shows predicted revenues and costs. Prepare a contribution margin statement that shows predicted revenues, costs, and profit before tax.

Exhibit 3 JW Sports Supplies (A) Description of Costs Exhibit 4 JW Sports Supplies (A) Monthly Costs at Different Volume Levels