M5-14 Preparing a Contribution Margin Income Statement [LO 5-5]

Sandys Socks makes the worlds best socks. Sandy performed a least-squares regression of the information for the last eight months and obtained the following results.

Month	Number of Socks Produced	Total Cost
January	6,750	7,500
February	2,800	3,900
March	3,250	4,200
April	4,250	5,050
May	7,800	8,150
June	3,700	4,450
July	6,150	6,900
August	6,800	7,520

Sandy performed a least-squares regression and obtained the following results.

	Coefficients
Intercept	1,255.09
X Variable 1	0.91

Suppose that Sandys expects to sell 4,200 socks during the month of September and that each sock sells for $3.75. Complete Sandys contribution margin income statement for the month of September. (Round your answers to 2 decimal places.)

SANDYS SOCKS
Contribution Margin Income Statement
Month of September
Contribution Margin
Net Operating Income