APPLY THE CONCEPTS: Prepare a contribution margin income statement issume that you are part of the accounting team for McCartney Manufacturing. The company has only one product that sells for $40 per unit. McCartney estimates total fined costs to be $9,000. McCartney estimates direct materials cost of $8.00 per unit, direct labor costs of $10.00 per unit, and variable overhead costs of $2.00 per unit. The CEO would like to see what the gross margin and operating income will be if 700 units are sold in the next period. Prepare a contribution margin income statement. McCartney Manufacturing Contribution Margin Income Statement Sales Less: Variable costs Contribution margin Less: Fixed costs 9.000 Operating income Fuck Check My Work Apply the numbers given in this section to the formal determined in the section above Total revenues will be equal to the unit sales price times the number of units sold. The total variable cost will be equal to the total of all variable unit costs times the number of units sold CVP Analysis and the Break-Even Point in Sales Dollars CVP analysis focuses on selling price, units sold, variable cost per unit, and total fixed costs. Managers can use the contribution margin format to understand the effects of changes in any of these areas. Contribution margin is the amount that is available to pay costs. After those costs are paid, anything remaining