M5-16 (Algo) Preparing a Contribution Margin Income Statement [LO 5-5]

Handys Hats makes the worlds best hats. Information for the last eight months follows:

Month	Number of Hats Produced	Total Cost
January	7,900	12,425
February	7,400	12,000
March	6,300	11,150
April	5,400	8,300
May	4,650	7,600
June	2,200	5,300
July	2,600	5,500
August	4,650	7,750

Suppose that Handys expects to sell 5,800 hats during the month of September and that each hat sells for $2.75.

Handy performed a least-squares regression and obtained the following results:

	Coefficients
Intercept	1,905.16
X Variable 1	1.33

Prepare Handys contribution margin income statement for the month of September. (Round your answers to 2 decimal places.)

Handy's Hats makes the world's best hats. Information for the last eight months follows: Month January February March April May June July August Number of Hats Produced 7,900 7,400 6,300 5,400 4,650 2,200 2,600 4,650 Total Cost 12,425 12,000 11,150 8,300 7,600 5,300 5,500 7,750 Suppose that Handy's expects to sell 5,800 hats during the month of September and that each hat sells for $2.75. Handy performed a least-squares regression and obtained the following results: Intercept X Variable 1 Coefficients 1,905.16 1.33 Prepare Handy's contribution margin income statement for the month of September. (Round your answers to 2 decimal places.) HANDY'S HATS Contribution Margin Income Statement Month of September Sales Revenue Contribution Margin Net Operating Income