a$.$ Prepare a Contribution Margin Income Statement for the firm without actepting the contract.

b$.$ Calculate the numberadStional units to bring productign up to full capacity.

c$.$ Prepare a Contribution Margin Income Statement for the firm if Domco accepts the contract

$3.$ Fien Lures inc. marnfactured fishing lurec. Their most popular lure is a Bars plug which uses a hook purchased from another manufacturer and polystyrene for the body of the lure itvelt The company uses highly automated injection molding machines to manufacture hires. Because of this direct labor cost are at a minimum because one machine operator can operate three injection molding machines at same time. The company har developed the following standard costs include scrap to manafacture each lure:

Material standards:

Hook: $1\mathrm{.}1$ Hooks per lure at $$\mathrm{.}10$ per hook.

Polytyrene plantik $3\mathrm{.}5$ ounces per lure at $$\mathrm{.}25$ per ounce.

Laber standards:

Direct laberi $005$ hours to produce one lure at $$2150he$ including all emploper payroll tases and benefis.

During month of April the compary manslactured $120000$ Bas luwes and incurred the folligwing costs:

Material cests:

Purchased $30,000$ pounds $(480,000$ ounces$)$ of polystyene for a total cost of $$144,000$ dollars. Uied $418,000$ ounces of polystyrene to produce the Bass lures.

Purchased $140,000$ hooks for a total coit of $$13,500.$

Uned $130,000$ hooks to produce the Bass lures.

Labor costs: $635$ hours for a total direct labor coct of $$15,240.$

Required $($uie the spreadsheet poovided$)16$c uning the above information calculate all variances for material and disect labor for the month of April.