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Prepare a contribution margin income statement Assume that you are part of the accounting team for Mccartney Productions. The company has only one product that sells for $25 per unit. Mccartney estimates total fixed costs to be $5,600. Mccartney estimates direct materials cost of $6.00 income statement. per unit, direct labor costs of $7.50 per unit, and variable overhead costs of $1.50 per unit. The CEO would like to see what the gross margin and operating income will be if 800 units are sold in the next period. Prepare a contribution margin Mccartney Productions Contribution Margin Income Statement Sales 20,000 Less: Variable costs Contribution margin Less: Fixed costs 5,600 Operating income