C Per Unit $40 5 Toy Store Contribution Income Statement For the month ended December 31, Total Sales $200,000 Variable expenses Cost of Goods Sold (120,000) Sales commissions (20,000) Delivery of necklaces (25,000) Offsite Billing (5,000) Total variable expenses (170,000) Contribution margin: 30,000 Fixed Expenses: Store rent (8,000) Sales Salaries (3,000) Advertising (2,000) Depreciation on laptops (600) Depreciation on office equip (800) Offsite billing (1,000) Administrative salaries (6,000) Employee benefits (1 200) total fixed expenses (22,600)! Net operating income (loss) 7,400 (24) (4) (5) (1) (34) 6 0 1 2 Practice #3a d. Determine the number of units that must be sold to earn a profit of $20,000. Selling Price VC per unit CM per unit Fixed Expenses + Desired Profit CM Per unit Units # of units per unit Total Proof: . Sales Variable Expenses Contribution Margin Fixed Expenses Operating income