Step 6: Prepare Contribution Margin Income Statement Here's how the contribution margin income statement will look: Description Amount Sales Revenue $1,890,000 Variable Costs: - Variable Manufacturing Costs ($967,500) - Variable Selling Expenses ($202,500) Total Variable Costs ($1,170,000) Contribution Margin $720,000 Fixed Costs: - Fixed Manufacturing Overhead ($210,000) - Fixed Selling Expenses ($190,000) Total Fixed Costs ($400,000) Net Income $320,000 Compute the number of fireplaces required to break even 2. Assume the company uses absorption costing: Compute the unit product cost for one fireplace Prepare an income statement for the year Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Was fixed overhead deferred to or released from inventory? Fixed overhead was